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1. Company Snapshot

1.a. Company Description

Camden Property Trust, an S&P 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities.Camden owns interests in and operates 167 properties containing 56,850 apartment homes across the United States.Upon completion of 7 properties currently under development, the Company's portfolio will increase to 59,104 apartment homes in 174 properties.


Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 13 consecutive years, most recently ranking #18.The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.

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1.b. Last Insights on CPT

The recent 3-month performance of Camden Property Trust was negatively impacted by elevated supply and high debt levels. The company's Q2 earnings release showed a decline in FFO per share, despite beating revenue estimates. Additionally, Camden's Q2 results may have been affected by stable occupancy and revenue gains, but with a slight decline in FFO per share. The company's high debt levels and elevated supply in the market remain headwinds, which may impact its future performance.

1.c. Company Highlights

2. Camden Property Trust's Earnings Update: Navigating Uncertainty

Camden Property Trust reported a strong finish to 2025, with core FFO exceeding original guidance by $0.13 per share. Actual EPS came out at $1.76, beating estimates of $1.73. The company's revenue growth is expected to be modest in 2026, with a forecasted growth rate of 2%, which is lower than the analyst estimates of 2.9%. The earnings report highlights a challenging operating environment, with uncertainty surrounding the first half of 2026.

Publication Date: Feb -10

📋 Highlights
  • 2026 Core FFO Guidance:: Projected $6.60–$6.90 per share midpoint of $6.75, a $0.13 decline from 2025.
  • California Portfolio Sale:: Marketing 11 properties for $1.5B–$2B, with 60% proceeds reinvested via 1031 exchanges into Sunbelt markets.
  • Same-Store Revenue Growth:: 75 basis points midpoint (55 bps from rental income, 20 bps from other income) with 2% market rent growth expected.
  • Capital Allocation Plan:: $1.1B redeployed into Sunbelt via 1031 exchanges and $650M allocated to share repurchases post-California sale.

Financial Performance

The company's financial performance was marked by a decrease in fee and asset management income, an increase in general overhead and other corporate expenses, and a decrease in same-store net operating income. The expected core FFO per share for 2026 is in the range of $6.60 to $6.90, with a midpoint of $6.75, representing a $0.13 per share decrease from 2025 results.

Operational Highlights

Camden Property Trust's operational highlights include the disposal of three communities in Houston and Phoenix for $201 million and the acquisition of one community in Orlando for $85 million. The company is marketing its 11 California operating communities for sale, with preliminary indications of value ranging from $1.5 billion to $2 billion. The sale is expected to close mid-year, with approximately 60% of the sales proceeds to be reinvested into high-demand Sunbelt markets through 1031 exchanges.

Valuation Metrics

To understand what's priced into Camden Property Trust's stock, we can look at its valuation metrics. The company's P/E Ratio is 30.25, P/B Ratio is 2.67, and EV/EBITDA is 10.32. The Dividend Yield is 3.89%, and the Free Cash Flow Yield is 5.49%. These metrics indicate that the stock may be slightly overvalued, but the dividend yield is attractive.

Outlook

The company's outlook for 2026 is cautious, with expectations of modest acceleration in the second half of the year. The supply deliveries peaked in 2024 and continued to decline in 2025, setting up 2026 and 2027 to be below-average years for new supply. Camden Property Trust is well-positioned to navigate the uncertain operating environment, with a strong portfolio and a solid balance sheet.

Growth Prospects

The company's growth prospects are tied to the recovery of the apartment market, with expectations of new lease rate growth above 0% this year. The timeline for this recovery is uncertain, but Camden Property Trust is well-positioned to benefit from the eventual upturn. The company's urban assets are expected to continue outperforming its suburban assets, driven by revenue growth.

3. NewsRoom

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16,160 Shares in Camden Property Trust $CPT Purchased by Caprock Group LLC

Feb -14

Source: defenseworld.net

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Envestnet Asset Management Inc. Reduces Stake in Camden Property Trust $CPT

Feb -14

Source: defenseworld.net

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I Wouldn't Want To Retire Without The 3 Most Undervalued Income Machines

Feb -13

Source: seekingalpha.com

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36 U.S. REITs Expected To Raise Dividends In Q1 2026

Feb -10

Source: seekingalpha.com

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My Ultimate Strategy For High Income And Market-Beating Returns

Feb -08

Source: seekingalpha.com

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From Silicon To Steel: The Value Trade Returns

Feb -08

Source: seekingalpha.com

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Camden Property Trust Q4 Earnings Call Highlights

Feb -08

Source: defenseworld.net

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A Once-In-A-Decade Chance To Win Big With REITs

Feb -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.87%)

6. Segments

Same Store Communities

Expected Growth: 1.8%

Camden Property Trust's 1.8% same-store community growth is driven by a combination of factors, including strong demand for apartments, effective rent growth strategies, and a focus on operational excellence. Additionally, the company's investments in technology and amenities have enhanced the resident experience, leading to increased retention and revenue growth.

Non-same Store Communities

Expected Growth: 2.2%

Camden Property Trust's 2.2% growth in Non-same Store Communities is driven by strategic acquisitions, effective lease-up of newly developed properties, and strong demand in target markets. Additionally, the company's focus on amenity-rich communities and superior customer service has led to increased pricing power and higher occupancy rates, contributing to the segment's growth.

Dispositions/Other

Expected Growth: 1.5%

Camden Property Trust's Dispositions/Other segment growth of 1.5% is driven by strategic asset sales, recycling of capital into higher-growth opportunities, and disciplined expense management. Additionally, the company's focus on optimizing its portfolio through value-add initiatives and strong operational execution also contribute to this growth.

Non-property

Expected Growth: 2.5%

Camden Property Trust's non-property segment growth of 2.5% is driven by increasing demand for its fee-based services, expansion of its third-party management business, and strategic investments in technology and personnel. Additionally, the segment benefits from a strong multifamily market, with rising rents and occupancies, as well as a growing need for affordable housing solutions.

Development and Lease-up Communities

Expected Growth: 2.8%

Camden Property Trust's 2.8% growth in Development and Lease-up Communities is driven by increasing demand for multifamily housing, strategic property acquisitions, and effective lease-up strategies. Additionally, the company's focus on amenity-rich communities, proximity to employment centers, and strong operational execution contribute to its growth momentum.

7. Detailed Products

Apartment Rentals

Camden Property Trust offers a range of apartment rentals across the United States, providing residents with comfortable and convenient living spaces.

Lease Renewal Services

Camden Property Trust provides lease renewal services, allowing residents to easily extend their stay in their current apartment or transfer to a new one.

Property Management Services

Camden Property Trust offers property management services, overseeing the day-to-day operations of its apartment communities.

Development and Construction Services

Camden Property Trust provides development and construction services, building new apartment communities and renovating existing ones.

Acquisition and Disposition Services

Camden Property Trust offers acquisition and disposition services, helping clients buy and sell apartment communities.

8. Camden Property Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

Camden Property Trust operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and high-quality properties help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Camden Property Trust's customers have some bargaining power due to the availability of substitutes, but the company's strong brand reputation and high-quality properties help to reduce this power.

Bargaining Power Of Suppliers

Camden Property Trust has a diverse supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's large scale of operations gives it negotiating power over suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the real estate industry, including the need for significant capital and regulatory approvals.

Intensity Of Rivalry

The real estate industry is highly competitive, and Camden Property Trust faces intense rivalry from other companies. The company's strong brand reputation and high-quality properties help it to compete effectively in this environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.05%
Debt Cost 3.95%
Equity Weight 53.95%
Equity Cost 8.12%
WACC 6.20%
Leverage 85.37%

11. Quality Control: Camden Property Trust passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Invitation Homes

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Value: 3.8

Growth: 6.3

Quality: 6.1

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

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American Homes

A-Score: 6.0/10

Value: 3.2

Growth: 6.3

Quality: 5.8

Yield: 7.0

Momentum: 3.5

Volatility: 10.0

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Essex Property Trust

A-Score: 5.9/10

Value: 3.3

Growth: 5.6

Quality: 6.7

Yield: 7.0

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Volatility: 9.0

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Camden Property

A-Score: 5.7/10

Value: 3.0

Growth: 4.2

Quality: 6.6

Yield: 7.0

Momentum: 3.5

Volatility: 10.0

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Mid-America Apartment Communities

A-Score: 5.6/10

Value: 2.8

Growth: 5.2

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

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Apartment Income REIT

A-Score: 4.6/10

Value: 4.4

Growth: 4.3

Quality: 5.4

Yield: 4.0

Momentum: 6.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

108.53$

Current Price

108.53$

Potential

-0.00%

Expected Cash-Flows