Camden Property Trust (CPT) shares slumped 5.4% in pre-market trading on Thursday after the apartment REIT operator provided a cautious outlook on rent growth amid continued elevated levels of new supply in its markets.
While the company reported Q3 2024 earnings that modestly beat Wall Street expectations on core funds from operations (FFO) of $1.71 per share, its revenue fell slightly short of estimates due to pricing pressure from the supply influx. The company maintained its full-year outlook midpoint but narrowed the expected range for revenue growth to 1.1%-1.5% from 1%-1.8% previously.
In discussing the results, CEO Ric Campo highlighted strong demand drivers like solid job growth and migration trends across CPT's markets. However, he cited the record level of 50-year peak in new apartment supply as continuing to limit meaningful rent growth in most regions. Rent growth is expected to remain muted through the first half of 2025 before potentially accelerating in 2026-2027, according to third-party projections.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.