Camden National Corporation · NASDAQ:CAC
Camden National — Q4 2023 Earnings Presentation
20 slides from Camden National's earnings presentation, Jan 30, 2024
Slide 1: Camden Property Trust 4Q23 Earnings Call
CAMDEN PROPERTY TRUST 4Q23 EARNINGS CALL
Slide 2: Camden's 2024 Market Grades
CAMDEN’S 2024 MARKET GRADES GRADE OUTLOOK EXPECTED REVENUE Total Portfolio B Moderating 0.5% - 2.5% San Diego/Inland Empire A Moderating 2% - 4% Southeast FL A- Moderating 2% - 4% Washington DC Metro B+ Moderating 2% - 4% LA/Orange County B Improving 2% - 4% Houston B Moderating 2% - 4% Charlotte B
Slide 3: Camden's 2024 Market Grades
CAMDEN’S 2024 MARKET GRADES GRADE OUTLOOK EXPECTED REVENUE Denver B Moderating 1% - 2% Tampa B Moderating 1% - 2% Atlanta B- Improving 1% - 2% Raleigh B- Stable 1% - 2% Phoenix B- Stable 1% - 2%
Slide 4: Camden's 2024 Market Grades
CAMDEN’S 2024 MARKET GRADES GRADE OUTLOOK EXPECTED REVENUE Dallas B- Stable (1)% - 1% Orlando C+ Moderating (1)% - 1% Nashville C Stable (1)% - 1% Austin C- Stable (1)% - 1%
Slide 5: 4Q23 Signed New Leases and Renewals
4Q23 SIGNED NEW LEASES AND RENEWALS NEW LEASES (4.3)% RENEWALS 3.9% BLENDED RATE (0.6)%
Slide 6: Camden Property Trust 4Q23 Earnings Call
CAMDEN PROPERTY TRUST 4Q23 EARNINGS CALL
Slide 7: Camden NoDa
CAMDEN NODA
Slide 8: Camden Woodmill Creek
CAMDEN WOODMILL CREEK
Slide 9: Camden Durham
CAMDEN DURHAM
Slide 10: Asset Disposition
ASSET DISPOSITION CAMDEN MARTINIQUE • 714-UNIT 38-YEAR-OLD COMMUNITY IN COSTA MESA, CALIFORNIA • $232M SALES PRICE • ~5.5% YIELD AFTER MANAGEMENT FEES AND ACTUAL CAP EX • 10.6% UNLEVERED IRR OVER 26 YEAR HOLD PERIOD
Slide 11: Unsecured Notes
UNSECURED NOTES • 3-YEAR SENIOR UNSECURED NOTES • $500M • FIXED COUPON OF 5.85% • ENTIRE AMOUNT SWAPPED TO SOFR + 112 BPS • 10-YEAR SENIOR UNSECURED NOTES • $400M • FIXED COUPON OF 4.90% • YIELD OF 4.94% • UTILIZED PROCEEDS TO PREPAY OUR $300M TERM LOAN • IN JANUARY, REPAID AT MATURITY OUR $250M 4.4
Slide 12: 4Q23 Core FFO Per Share
4Q23 CORE FFO PER SHARE 1¢ per share $1.72 $1.73 4Q23 GUIDANCE MIDPOINT 4Q23 ACTUAL RESULTS • BAD DEBT AVERAGED 1.1% VS. 1.5% 4Q23 FORECAST • SAME STORE OCCUPANCY 10 BPS AHEAD OF FORECAST
Slide 13: 2023 Same Store Growth
2023 SAME STORE GROWTH REVENUE 5.1% EXPENSE 6.7% NOI 4.3%
Slide 14: 2024 Core FFO Guidance
2024 CORE FFO GUIDANCE 8¢ $6.82 $6.74 2023 ACTUAL RESULTS 2024 GUIDANCE MIDPOINT + 7.0 ¢ GROWTH FROM DEVELOPMENT, NON-SAME STORE, AND RETAIL COMMUNITIES + 7.0 ¢ LOWER INTEREST EXPENSE PRIMARILY DUE TO LOWER DEBT BALANCES PARTIALLY OFFSET BY LOWER CAPITALIZED INTEREST + 3.5 ¢ INCREASE IN FEE AND ASSE
Slide 15: 2024 Same Store Growth Guidance
2024 SAME STORE GROWTH GUIDANCE REVENUE 1.5% EXPENSE 4.5% NOI 0.0%
Slide 16: 2024 Same Store Revenue Growth
2024 SAME STORE REVENUE GROWTH 0.5% EARN IN +0.7% 1.4% ANNUAL MARKET RENTAL RATE GROWTH ÷ 2 1.2% NET MARKET RENT GROWTH +0.3% LOWER BAD DEBT EXPENSE 1.5% RENTAL INCOME GROWTH
Slide 17: 2024 Same Store Expense Growth
2024 SAME STORE EXPENSE GROWTH 1.4% INSURANCE (7.5% x 18.0%) 3.1% OTHER PROPERTY EXPENSES INCLUDING TAXES (92.5% x 3.4%) 4.5% 2024 EXPENSE GROWTH MIDPOINT
Slide 18: 2024 Guidance
2024 GUIDANCE MIDPOINT ASSUMES: • $250 MILLION OF ADDITIONAL DISPOSITIONS OFFSET BY $250 MILLION OF ACQUISITIONS WITH NO NET ACCRETION OR DILUTION • UP TO $300 MILLION OF DEVELOPMENT STARTS IN SECOND HALF OF 2024 • $175 MILLION OF TOTAL 2024 DEVELOPMENT SPEND
Slide 19: 1Q24 Expected Core FFO Per Share
1Q24 EXPECTED CORE FFO PER SHARE (MIDPOINT OF GUIDANCE RANGE) (6¢) PER SHARE $1.73 $1.67 4Q23 ACTUAL RESULTS 1Q24 GUIDANCE MIDPOINT ($0.035) NOI FROM SAME STORE COMMUNITIES PRIMARILY DUE TO SEQUENTIAL INCREASE IN PROPERTY TAXES ( 0.035) LOWER NOI ATTRIBUTABLE TO 4Q23 DISPOSITION OF CAMDEN MARTINIQUE
Slide 20: Camden Property Trust 4Q23 Earnings Call
CAMDEN PROPERTY TRUST 4Q23 EARNINGS CALL