On February 6, 2025, Camden Property Trust (CPT, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. Camden Property Trust, a real estate investment trust, focuses on the acquisition, management, and development of multifamily apartment communities across the United States, with a significant presence in the Sun Belt regions including Houston, Dallas, Las Vegas, and Atlanta.

Performance Overview

Camden Property Trust reported an earnings per share (EPS) of $0.37 for the fourth quarter of 2024, aligning with analyst estimates. This represents a significant decrease from the $2.03 EPS reported in the same quarter of the previous year. For the full year, the EPS was $1.50, which also met the annual estimate but marked a decline from $3.70 in 2023.

The company's revenue for the fourth quarter was $386.3 million, slightly below the analyst estimate of $386.75 million. For the full year, Camden reported revenue of $1,543.8 million, closely matching the annual estimate of $1,544.73 million.

Financial Achievements and Challenges

Camden Property Trust's Funds from Operations (FFO) per share for the fourth quarter was $1.68, slightly below the $1.72 reported in the same period last year. Core FFO remained stable at $1.73 per share, meeting the company's guidance midpoint. These metrics are crucial for REITs as they provide a clearer picture of operational performance by excluding depreciation and other non-cash items.

Despite the stable FFO, Camden faced challenges with new lease rates, which declined by 4.7% compared to the previous year. However, renewal rates showed a modest increase of 3.2%, indicating some resilience in tenant retention.

Key Financial Metrics

Operational Insights

Camden's same property revenue grew by 0.8% year-over-year, while expenses increased by 0.2%, resulting in a net operating income (NOI) growth of 1.2%. The occupancy rate improved slightly to 95.3% from 94.9% in the previous year, reflecting effective property management and tenant retention strategies.

During the quarter, Camden completed construction at two properties and continued leasing activities at another, indicating ongoing expansion efforts. The acquisition of Camden Leander, a 352-home apartment community in Austin, TX, for approximately $67.7 million, further strengthens its portfolio.

Liquidity and Future Outlook

As of December 31, 2024, Camden Property Trust maintained robust liquidity with over $1.0 billion, including $21.0 million in cash and cash equivalents. The company has no debt maturities until April 2026, providing financial stability and flexibility for future investments.

Camden's Board of Trust Managers declared a first quarter 2025 dividend of $1.05 per common share, reflecting confidence in the company's financial health and future prospects.

Camden Property Trust's performance in the fourth quarter of 2024 demonstrates resilience amidst market challenges, with stable FFO and strategic growth initiatives. The company's focus on maintaining a strong balance sheet and expanding its property portfolio positions it well for future growth in the competitive real estate market.

Explore the complete 8-K earnings release (here) from Camden Property Trust for further details.