Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (November 2022)
36 slides from Camden Property Trust's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
Camden Buckhead – Atlanta, GA Investor Presentation November 2022
Slide 2: Table of Contents
Camden Central – St. Petersburg, FL Table of Contents Company Overview 3‐5 Recent Highlights & Guidance 6‐11 Multifamily Fundamentals 12‐16 Camden’s Portfolio 17‐21 Real Estate Transactions 22‐29 Capital Structure & Liquidity 30‐31 Appendix 32‐35 FORWARD‐LOOKING STATEMENTS – In addition to historica
Slide 3: Company Overview
Camden Greenville – Dallas, TX Company Overview 3
Slide 4: About Camden
About Camden • Publicly traded since 1993 • Experienced management team with sound business • S&P 500 Company plan and proven history of • Total Market Cap of $17B performance • Recognized by FORTUNE • Consistent long‐term focus Magazine as one of the 100 and commitment to high‐ Best Companies to Wo
Slide 5: Camden’s Strategy
Camden’s Strategy • Focus on high‐growth markets (employment, population, migration) • Operate a diverse portfolio of assets (geographical, A/B, urban/suburban) • Recycle capital through acquisitions and dispositions • Create value through development, repositioning and investments in technology • M
Slide 6: Recent Highlights & Guidance
Camden North End II – Phoenix, AZ Recent Highlights & Guidance 6
Slide 7: 3Q22 Highlights
3Q22 Highlights • Stabilized two development communities for a total cost of $256.5 million • Commenced construction on two development communities for a total estimated cost of $155.0 million • Began leasing at one development community with a total estimated cost of $100.0 million • Amended and re
Slide 8: Operating Statistics
Operating Statistics (Results for 2022 same property pool) Same Property Occupancy 3Q22 Oct 2022* Oct 2021 Occupancy 96.6% 96.1% 97.2% Same Property New Lease and Renewal Data – Date Signed(1) 3Q22 Oct 2022* Oct 2021 New Lease Rates 11.8% 5.2% 17.6% Renewal Rates 11.5% 9.4% 13.8% Blended Rates 11.6%
Slide 9: New Leases & Renewals – Signed & Effective
New Leases & Renewals – Signed & Effective (Results for 2022 and 2021 reflect current same property pool of 46,151 units; Results for 2020 reflect former same property pool of 45,200 units) DATE SIGNED(1) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22* New Leases & Renewals – Date Signe
Slide 10: Same Property Occupancy by Market
Same Property Occupancy by Market (Results for 2022 and 2021 reflect current same property pool; Results for 2020 reflect former same property pool) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22* Atlanta 95.6% 95.6% 96.0% 96.2% 96.6% 97.4% 97.4% 96.8% 97.0% 97.0% 96.6% 96.2% Austin 96.
Slide 11: 2022 Guidance
2022 Guidance (as of 10/27/22) EARNINGS LOW MIDPOINT HIGH EPS per share $5.98 $6.00 $6.02 FFO per share $6.57 $6.59 $6.61 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 11.00% 11.25% 11.50% Expense Growth 4.75% 5.00% 5.25% NOI Growth 14.25% 14.75% 15.25% FUTURE 2022 TRANSACTIONS LOW MIDP
Slide 12: Multifamily Fundamentals
Camden Downtown – Houston, TX Multifamily Fundamentals 12
Slide 13: Multifamily Supply
Multifamily Supply • Starts should remain elevated until 2023. • Completions expected to peak in 2024. Multifamily Supply (Historical and Projected) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1Q91 1Q92 1Q93 1Q94 1Q95 1Q96 1Q97 1Q98 1Q99 1Q00 1Q01 1Q02 1Q03 1Q04
Slide 14: Strong Demand for Multifamily Rental Housing
Strong Demand for Multifamily Rental Housing Favorable Demographic Trends – Aged 20 to 34 Over 60% of this age group choose to rent • Young adults currently 70 65 number almost 68 million and will remain a steady 60 source of demand in the 55 near term 50 1991 1993 1995 1997 1999 2001 2003 2005 2007
Slide 15: Young Adults Making Lifestyle Decisions Later
Young Adults Making Lifestyle Decisions Later Young Adult Lifestyle Choices Young Adult Households 36 70% 34 60% 32 50% 30 40% Age 28 26 30% 24 20% 22 10% 20 0% 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 1980 1990 2000 2010 2020 2021 Marriage First Child First Home Purchas
Slide 16: Higher Propensity to Rent
Higher Propensity to Rent Propensity to Rent Apartments by Age • Many people still choosing to rent rather than buy 50% 40% • Higher propensity to rent in 30% CPT markets vs. U.S. average 20% • Homeownership rate overall 10% remains near long‐term 0% average of 65% <35 35‐44 45‐54 55‐64 65+ • Homeow
Slide 17: Camden’s Portfolio
Camden Tempe II – Tempe, AZ Camden’s Portfolio 17
Slide 18: Portfolio Statistics
Asset Class* Portfolio Statistics (as of 3Q22) 37% NOI Contribution by Market (includes all operating communities) 63% Class A Class B Washington DC Metro Location* 12.6% Raleigh Denver Charlotte 5.0% Los Angeles/Orange County Nashville 5.7% 5.2% 6.2% 1.4% Phoenix 41% 8.0% San Diego/Inland Empire 3.
Slide 19: Camden Resident Profile
Camden Resident Profile (results for total portfolio) Age Range of Camden Residents • Median Age 50% 31 years 40% 30% • Average Annual Household 20% Income of ~ $121K for New 10% 0% Move‐Ins in 3Q22 0‐17 18‐24 25‐34 35‐44 45‐64 65+ • Average Rent‐to‐Income Ratio of 19.9% for New Total Number of Occu
Slide 20: Focus on High-Growth Markets
Focus on High‐Growth Markets Population Growth Employment Growth Total Migration Estimated Gain 2022‐2024 Estimated Gain 2022‐2024 Actual 2020‐2021 1 Houston 256,000 1 Dallas 240,000 1 Phoenix 164,000 2 Phoenix 206,000 2 New York City 237,000 2 Dallas 114,000 3 Riverside 199,000 3 Houston 213,000 3
Slide 21: Earnings & Dividend Growth
Earnings & Dividend Growth Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Dividends $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 (1) (2) (3) (4) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FFO per share AFFO per share Dividends per share (1) Excludes s
Slide 22: Real Estate Transactions
Camden Franklin Park – Franklin, TN Real Estate Transactions 22
Slide 23: Capital Recycling
Capital Recycling ($ 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. $3.4B Total Dispositions $4.2B Total Developments(1) $2.7B Total Acquisitions(2) $445 $795 $635 $
Slide 24: 2022 Acquisition of Fund Partnership Interests
2022 Acquisition of Fund Partnership Interests Gross Asset Valuation $2.1 billion Acquired Interest 68.7% Consideration Paid, Net of Assumed Secured Mortgage Debt $1.1 billion Communities Acquired 22 Average Age 12 years Apartment Homes 7,247 Average 3Q22 Monthly Rental Rate $1,627 per unit 24
Slide 25: Development Value Creation
Development Value Creation Development Communities Completed and Stabilized (2011‐2022) Communities 38 Apartment Homes 11,429 Total Cost $2.7B Market Value* $4.2B Value Creation $1.5B Camden NoMa II – Washington D.C • Year Built 2018 Camden Cypress Creek II – Cypress, TX • Year Built 2021 Camden Lak
Slide 26: Development Communities
Development Communities CURRENT DEVELOPMENT COMMUNITIES ESTIMATED Total Cost Construction Initial Construction Stabilized Name Location Total Homes % Leased(1) ($ in millions) Start Occupancy Completion Operations Camden Atlantic Plantation, FL 269 $100 3Q20 3Q22 4Q22 4Q23 40% Camden Tempe II Tempe,
Slide 27: Current Development Communities
Current Development Communities Camden Atlantic – Plantation, FL Camden NoDa – Charlotte, NC Camden Tempe II – Tempe, AZ Camden Village District – Raleigh, NC Camden Durham – Durham, NC 27
Slide 28: Current SFR Development Communities
Current SFR Development Communities Camden Woodmill Creek – The Woodlands, TX Camden Long Meadow Farms – Richmond, TX 28
Slide 29: Repositioning Program
Repositioning Program (results for total portfolio includes former JVs) • Select well‐located 15‐ to 20‐ before – kitchen after – kitchen year‐old communities • Update kitchen and bath areas, appliances, flooring, fixtures, lighting, etc. • $566 million spent to date through 3Q22 • Nearly 39,000 apa
Slide 30: Capital Structure & Liquidity
Camden Victory Park – Dallas, TX Capital Structure & Liquidity 30
Slide 31: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 9/30/22) Total Market Cap = $17B • 3.7% weighted average Unsecured Senior Strong Credit Ratings interest rate on all debt Term Loan $40 Unsecured Notes Moody’s Secured $3,133 • 93.9% fixed rate debt Debt $515 A3 • 86.0% unsecured debt Stable • 6.4 year
Slide 32: Appendix
Camden Highland Village Houston, TX 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 Expected FFO Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance ex
Slide 35: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations Adjusted EBITDA Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (ga
Slide 36: CAMDEN
CAMDEN
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