Camden Property Trust · NYSE:CPT
Camden Property Trust — NAREIT Conference 2021
41 slides from Camden Property Trust's conference presentation, June 2021
Slide 1: Investor Presentation June 2021
Camden RiNo – Denver, CO Investor Presentation June 2021
Slide 2: Table of Contents
Camden Downtown I – Houston, TX Table of Contents Company Overview 3‐5 2021 Highlights & Guidance 6‐11 Multifamily Fundamentals 12‐16 Camden’s Portfolio 17‐21 Real Estate Transactions 22‐28 Capital Structure & Liquidity 29‐30 Other Initiatives 31‐36 Appendix 37‐40 FORWARD‐LOOKING STATEMENTS – In add
Slide 3: Company Overview
Camden North End II – Phoenix, AZ Company Overview 3
Slide 4: About Camden
About Camden • Publicly traded since 1993 • Experienced management team with sound business • S&P 400 Company plan and proven history of • Total Market Cap of $16.0B performance • Recognized by FORTUNE • Consistent long‐term focus Magazine as one of the 100 and commitment to high‐ Best Companies to
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, redevelopment, repositioning and investments in
Slide 6: 2021 Highlights & Guidance
Camden Brickell – Miami, FL 2021 Highlights & Guidance 6
Slide 7: Recent Highlights
Camden Buckhead Square Atlanta, GA Recent Highlights • Acquired recently constructed 328‐home apartment community in the Nashville, TN metro area for approximately $105 million • Commenced construction on Camden Durham, a 354‐home, $120 million development community in Durham, NC • Began leasing at
Slide 8: Rent Collections & Operating Statistics
Rent Collections & Operating Statistics (Results for 2021 same property pool) Same Property Scheduled Rents 1Q21 April 2021 May 2021 April 2020 May 2020 Collected 98.4% 98.5% 98.4% 94.3% 98.0% Deferred/Payment Plan Arranged ‐‐‐% ‐‐‐% ‐‐‐% 2.5% 1.2% Delinquent 1.6% 1.5% 1.6% 3.2% 0.8% Same Property O
Slide 9: New Leases & Renewals – Effective & Signed
New Leases & Renewals – Effective & Signed (Results for 2021 and 2020 reflect current same property pool; Results for 2019 reflect 2020 same property pool) DATE EFFECTIVE(1)(2) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21* New Leases & Renewals – Date Effective New Lease Rates 0.8% 3.2% 3.4% (0
Slide 10: Same Property Occupancy by Market
Same Property Occupancy by Market (Results for 2021 and 2020 reflect current same property pool; Results for 2019 reflect 2020 same property pool) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21* Atlanta 96.4% 96.3% 96.3% 96.0% 95.6% 95.5% 96.0% 96.2% 96.6% 97.4% Austin 96.0% 96.7% 96.5% 96.1% 96.
Slide 11: 2021 Guidance
2021 Guidance* EARNINGS LOW MIDPOINT HIGH EPS per share $0.84 $0.99 $1.14 FFO per share $4.94 $5.09 $5.24 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 0.85% 1.60% 2.35% Expense Growth 3.50% 3.90% 4.30% NOI Growth (1.10)% 0.25% 1.60% TRANSACTIONS LOW MIDPOINT HIGH Acquisitions $400M $45
Slide 12: Multifamily Fundamentals
Camden Roosevelt – Washington, DC Multifamily Fundamentals 12
Slide 13: Multifamily Supply
Multifamily Supply • Starts declined in 2020 post COVID‐19, and should return to more normal levels for 2021‐2023 • Completions expected to peak by 2022 then decline Multifamily Supply (Historical and Projected) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1Q91 1Q92 1Q93
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 • Millennials population 70 65 aged 20 to 34 currently (millions) numbers over 67 million 60 and will remain a steady 55 source of demand going 50 1990 1992 1994 1996 1
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% 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 1980 1990 2000 2010 2020 Marriage First Child First Home Purchase % M
Slide 16: Higher Propensity to Rent
Higher Propensity to Rent Propensity to Rent Apartments by Age (2019) • 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+ •
Slide 17: Camden's Portfolio
Camden Pier District – St. Petersburg, FL Camden’s Portfolio 17
Slide 18: Portfolio Statistics
Asset Class* Portfolio Statistics (as of 1Q21) NOI Contribution by Market 32% (includes pro‐rata share of NOI from JVs) 68% Class A Class B Washington DC Metro Location* 16.3% Raleigh Denver New Market Charlotte 4.9% Los Angeles/Orange County 6.1% Nashville 5.5% 6.9% Phoenix 8.0% 37% San Diego/Inlan
Slide 19: Camden Resident Profile
Camden Resident Profile Age Range of Camden Residents • Median Age 50% 30 years 40% 30% • Average Annual 20% Household Income 10% 0% ~ $100K 0‐17 18‐24 25‐34 35‐44 45‐64 65+ • Average Rent‐to‐Income Ratio Total Number of Occupants per Apartment Home 19.6% 50% 40% • Average Number of 30% Occupants pe
Slide 20: Focus on High-Growth Markets
Focus on High‐Growth Markets Population Growth Employment Growth Total Migration Estimated Gain 2021‐2023 Estimated Gain 2021‐2023 Actual 2019‐2020 1 Atlanta 257,000 1 New York City 517,000 1 Phoenix 145,000 2 Houston 223,000 2 Washington DC Metro 378,000 2 Tampa 87,000 3 Phoenix 217,000 3 Dallas 28
Slide 21: Earnings & Dividend Growth
Earnings & Dividend Growth Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Dividends $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 (1) (2) (3) (4) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FFO per share AFFO per share Dividends per share (1) Excludes special divi
Slide 22: Real Estate Transactions
Camden Design District – Dallas, TX Real Estate Transactions 22
Slide 23: Capital Recycling
Capital Recycling ($ 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. $3.1B Total Dispositions $3.2B Total Developments(1) $2.1B Total Acquisitions $316 $795 $635 $2,2
Slide 24: Development Value Creation
Development Value Creation Stabilized Current Development Total (2011‐2020) Communities Communities 31 11 42 Apartment Homes 9,490 3,346 12,836 Total Cost $2.0B $1.2B $3.2B Market Value* $3.2B $1.3B $4.5B Value Creation $1.2B $0.1B $1.3B Camden Montague – Tampa, FL • Year Built 2012 Camden Paces – A
Slide 25: Development Communities
Development Communities CURRENT DEVELOPMENT COMMUNITIES ESTIMATED Total Cost Construction Initial Construction Stabilized Name Location Total Homes % Leased(1) ($ in millions) Start Occupancy Completion Operations Camden Downtown I Houston, TX 271 $132 4Q17 1Q20 3Q20 4Q21 82% Camden RiNo Denver, CO
Slide 26: Current Development Communities
Current Development Communities Camden Downtown I ‐ Houston, TX Camden RiNo – Denver, CO Camden North End II – Phoenix, AZ Camden Lake Eola – Orlando, FL Camden Buckhead – Atlanta, GA Camden Hillcrest – San Diego, CA 26
Slide 27: Current Development Communities
Current Development Communities Camden Atlantic – Plantation, FL Camden Tempe II – Tempe, AZ Camden NoDa – Charlotte, NC Camden Durham – Durham, NC Camden Cypress Creek II (JV) – Cypress, TX 27
Slide 28: Reposition and Redevelopment Programs
Reposition and Redevelopment Programs REPOSITION REDEVELOPMENT COMPLETED IN 2020 • Select well‐located 15‐ to 20‐year‐old • Target 10‐ to 15‐year‐old mid‐rise and high‐ communities rise communities for renovation • Update kitchen and bath areas, appliances, • Expand scope of typical repositioning pr
Slide 29: Capital Structure & Liquidity
Camden Cotton Mills – Charlotte, NC Capital Structure & Liquidity 29
Slide 30: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 5/31/21) • 3.6% weighted average interest Total Market Cap = $16.0B Strong Credit Ratings $40 rate on all debt Moody’s • 98.7% fixed rate debt $3,128 A3 • 100.0% unsecured debt Stable $12,882 • 8.0 years weighted average maturity of debt Fitch Standard
Slide 31: Other Initiatives
Camden Lamar Heights – Austin, TX Other Initiatives 31
Slide 32: Technology
Technology • Evaluating numerous initiatives to increase revenues, reduce expenses and provide a better living experience for our residents • Completed the rollout of mobile maintenance and improved self‐ service online functionality for our residents • Upgraded to Oracle Cloud solution for integrat
Slide 33: Sustainability
Sustainability Camden’s purpose is to improve the lives of our team members, customers and shareholders, one experience at a time. We are committed to creating long‐term value for Camden’s stakeholders, and integrating sustainable practices into all aspects of our business. Camden’s most recent Sust
Slide 34: Environmental
Environmental We are committed to operating in an environmentally responsible manner, using our resources wisely, and continually seeking ways to reduce consumption, conserve energy and water, and enhance our waste management and recycling efforts. ENERGY EFFICIENCY RECYCLING AND WASTE MANAGEMENT WA
Slide 35: Social
Social Camden is committed to maintaining a high‐trust work environment that attracts, retains, and rewards the best and brightest people. Our workplace reflects Camden’s nine core values and cultivates an environment of respect, fairness, diversity, and fun for all. LEARNING AND DEVELOPMENT A GREAT
Slide 36: Governance
Governance Camden is committed to maintaining a business environment of integrity, responsibility, and accountability. We believe that companies with strong corporate governance and responsible business practices merit greater shareholder returns and corporate value. • Eight of Ten Trust Managers •
Slide 37: Appendix
Camden Potomac Yard – Arlington, VA Appendix 37
Slide 38: 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 39: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations EXPECTED FFO 2Q21 Range 2021 Range Low High Low High Expected earnings per common share ‐ diluted $0.25 $0.31 $0.84 $1.14 Expected real estate depreciation and amortization 0.93 0.93 3.95 3.95 Expected adjustments for unconsolidated joint ven
Slide 40: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations ADJUSTED EBITDA Three Months Ended Mar 31 2021 2020 Net income attributable to common shareholders $31,347 $43,284 Plus: Interest expense 23,644 19,707 Plus: Depreciation and amortization expense 93,141 91,859 Adjusted EBITDA Plus: Income all
Slide 41: Camden
CAMDEN