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Camden Property (CPT)
NYSE:CPT
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Camden Property
(NYSE:CPT)
69Neutral
Positive Factors
Analyst Rating
Analyst maintains an 'Outperform' rating on CPT, indicating confidence in the company's future performance.
Lease Rates
CPT's new lease rates were more stable compared to its peers, suggesting a better start to 2025 and potential for improved lease rates in the near-term.
Operating Expenses
CPT's operating expenses were significantly lower than expected, leading to a better-than-expected same-store net operating income.
Negative Factors
FY2025 Guidance
CPT's FY25 Core FFO guidance is slightly below consensus, with additional non-core charges affecting the expected growth.
Lease Rate Challenges
Same property lease rates decelerated, with negative new lease rates indicating challenges in maintaining rental income growth.
Market Revenue Decline
Some markets like Austin and Nashville, representing 6% of the company's portfolio, saw a decrease of ~3% in revenue, and is expected to persist going into 2025 due to supply pressures.
Camden Property (CPT) vs. S&P 500 (SPY)
Market Cap
$15.27B
Dividend Yield3.48%
Average Volume (3M)1.17M
Price to Earnings (P/E)71.9
Beta (1Y)0.74
Revenue Growth0.55%
EPS GrowthN/A
CountryUS
Employees1,660
SectorReal Estate
Sector Strength71
IndustryREIT - Residential
Share Statistics
EPS (TTM)1.50
Shares Outstanding106,758,070
10 Day Avg. Volume1,592,666
30 Day Avg. Volume1,171,565
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)N/A
Price to Sales (P/S)8.24
Price to Cash Flow (P/CF)20.90
P/FCF Ratio33.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$128.63Price Target Upside19.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Camden Property Business Overview & Revenue Model
Company DescriptionCamden Property Trust (CPT) is a real estate investment trust (REIT) that primarily focuses on the ownership, management, development, and acquisition of multifamily apartment communities. The company operates in various regions across the United States, offering high-quality residential properties with a range of amenities and services designed to enhance the living experience for tenants. Camden Property Trust's portfolio includes a diverse mix of urban and suburban properties, catering to a wide demographic of residents.
How the Company Makes MoneyCamden Property Trust makes money through rental income generated from its portfolio of multifamily apartment communities. The company collects rent from tenants residing in its properties, which constitutes the primary revenue stream. Camden also occasionally generates income from the sale of properties when market conditions are favorable. Additionally, the company may earn ancillary income from amenities and services offered to tenants, such as parking fees, pet fees, and other community-related services. Camden's strategic development and acquisition activities help expand its portfolio and increase potential revenue sources. The REIT structure allows Camden to benefit from favorable tax treatments, which can enhance overall profitability.
Camden Property Financial Statement Overview
Summary
Camden Property exhibits stable financial health with strong cash flow generation and a robust balance sheet. However, the sharp decline in income statement profitability metrics suggests operational challenges impacting margins. The company's zero debt position in the TTM period strengthens its financial resilience. Despite revenue growth, the decrease in ROE and profit margins may raise concerns over future profitability and efficiency.Income Statement
The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is 23.73%, which is lower than the previous annual period's 62.11%, indicating a sharp decline. Net profit margin in TTM is 14.02%, also down from 26.15% in the previous year. Revenue growth rate from 2022 to 2023 is 8.38%, showing a healthy increase in top-line performance. However, the EBIT margin dropped from 58.34% to 22.70%, indicating reduced operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position. The company has no debt in the TTM period, improving from a debt-to-equity ratio of 0.75 in 2023. The equity ratio is 54.52% in TTM, slightly improved from 53.06% in 2023, illustrating a strong equity base. Return on equity for TTM is 3.49%, significantly lower than the previous year's 8.10%, suggesting decreased efficiency in using shareholder funds.75
Positive
Cash Flow
Cash flow analysis shows solid performance with a high operating cash flow to net income ratio of 3.81 in TTM, up from 1.97 in 2023, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 3.81, a substantial improvement from 0.95 in the previous year. Free cash flow growth rate is 62.06% from 2023 to TTM, demonstrating significant cash reserves improvement.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.54B | 1.54B | 1.42B | 1.14B | 1.04B | Gross Profit |
| 944.51M | 957.68M | 893.56M | 695.71M | 620.86M | EBIT |
| 160.37M | 899.51M | 267.38M | 237.18M | 221.87M | EBITDA |
| 885.60M | 899.51M | 844.40M | 657.87M | 589.03M | Net Income Common Stockholders |
| 163.29M | 403.31M | 653.61M | 303.91M | 123.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.05M | 259.69M | 10.69M | 613.39M | 420.44M | Total Assets |
| 8.85B | 9.38B | 9.33B | 7.98B | 7.20B | Total Debt |
| 3.49B | 3.72B | 3.68B | 3.17B | 3.17B | Net Debt |
| 3.46B | 3.46B | 3.67B | 2.56B | 2.75B | Total Liabilities |
| 4.10B | 4.33B | 4.27B | 3.71B | 3.68B | Stockholders Equity |
| 4.68B | 4.98B | 4.99B | 4.20B | 3.44B |
| Cash Flow | Free Cash Flow | |||
| 381.14M | 384.02M | 295.28M | 148.75M | 92.07M | Operating Cash Flow |
| 774.88M | 794.95M | 744.71M | 577.47M | 519.32M | Investing Cash Flow |
| -285.23M | -127.13M | -1.46B | -804.39M | -429.60M | Financing Cash Flow |
| -725.49M | -417.21M | 109.93M | 421.37M | 307.32M |
Camden Property Technical Analysis
Negative
107.93
Price Trends
117.98
Negative
116.78
Negative
116.24
Negative
Market Momentum
0.83
Negative
58.57
Neutral
65.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPT, the sentiment is Negative. The current price of 107.93 is below the 20-day moving average (MA) of 116.82, below the 50-day MA of 117.98, and below the 200-day MA of 116.24, indicating a bearish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 58.57 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPT.
Camden Property Risk Analysis
Camden Property disclosed 21 risk factors in its most recent earnings report. Camden Property reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Camden Property Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $25.15B | 23.65 | 9.36% | 4.20% | 3.80% | 24.08% | |
71 Outperform | $17.54B | 22.83 | 13.53% | 3.76% | 6.29% | 82.88% | |
71 Outperform | $13.05B | 153.53 | 2.41% | 4.31% | 2.72% | -80.72% | |
69 Neutral | $15.27B | 71.91 | 3.38% | 3.48% | 0.55% | ― | |
68 Neutral | $12.88B | 32.88 | 23.13% | 3.03% | 2.17% | 15.94% | |
61 Neutral | $18.58B | 34.53 | 8.73% | 3.84% | 1.98% | -4.78% | |
61 Neutral | $4.24B | 15.87 | -3.65% | 12.20% | 6.29% | -21.37% |
* Real Estate Sector Average
Performance Comparison
CPT
Camden Property
107.93
14.65
15.71%
ELS
Equity Lifestyle
64.34
4.74
7.95%
EQR
Equity Residential
64.64
6.23
10.67%
MAA
Mid-America Apartment
154.30
31.44
25.59%
ESS
Essex Property
263.48
35.86
15.75%
UDR
UDR
39.46
5.05
14.68%
Camden Property Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -7.51% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Camden Property Trust's earnings call revealed a balanced outlook for 2025. While the company is strategically positioned for growth with strong population dynamics and a robust capital recycling plan, challenges persist in certain markets due to supply pressures and negative rental rate trends. The financial guidance reflects these mixed conditions, with some markets expected to outperform and others facing difficulties.Highlights
Strong Population Growth in Key Markets
Texas and Florida experienced significant population growth, adding over a million new residents in 2024, accounting for nearly one-third of the nation's population growth. Camden's markets capture 58.3% of US population growth.
Strategic Capital Recycling Plan
Camden plans to execute a strategic plan similar to post-Great Financial Crisis, focusing on acquiring, developing, and selling properties to optimize the portfolio. The plan includes acquiring $750 million in properties and developing $675 million in new projects.
Encouraging Supply and Demand Dynamics
Supply in key Camden markets is expected to peak in 2024 and decline through 2025, setting up 2026 to be a below-average year for new supply. Demand remains strong in the Sunbelt markets due to in-migration and unaffordability of homes.
Positive Outlook for Top Markets
Top markets like Tampa, Southern California, Washington DC, and Houston are expected to see revenue growth of 2-2.5% in 2025, with strong demand and manageable supply.
Solid Financial Position
Camden maintains a strong balance sheet with net debt to EBITDA at 3.8 times, providing capacity to capitalize on market opportunities.
Lowlights
Negative Blended Rental Rates in Q4 2024
Rental rates for the fourth quarter had new leases down 4.7% and renewals up 3.2%, resulting in a blended rate of negative 1.2%.
Challenges in Nashville and Austin
Both markets posted negative revenue growth in 2024 and are expected to remain challenged in 2025 due to continued new supply, with anticipated declines of 0-3%.
Flat Core FFO Guidance for 2025
Core FFO per share for 2025 is expected to be $6.60 to $6.90, a decrease from 2024, largely due to increased interest expenses and general expenses.
Pressure from New Supply
Markets like Charlotte and Dallas face elevated new supply, impacting revenue growth projections, with expectations of minimal to moderate growth.
Company Guidance
During Camden Property Trust's fourth quarter 2024 earnings call, management outlined expectations for the upcoming year, emphasizing positive market conditions for 2025. They forecasted same property revenue growth of 1% for 2025, with stronger performance in top markets like Southern California, Washington DC metro, and Houston, where anticipated growth ranges from 2% to 2.5%. The company plans to engage in $750 million of both acquisitions and dispositions to optimize their portfolio, aiming to ensure no single market exceeds 10% of their NOI by 2027. Camden's strategic plan includes development starts up to $675 million, supported by their solid balance sheet with a net debt to EBITDA ratio of 3.8 times. Furthermore, the company reported core FFO of $1.73 per share for Q4 2024, outperforming guidance, and projected a 2025 core FFO midpoint of $6.75 per share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.