Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (September 2023)
41 slides from Camden Property Trust's investor presentation, September 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023 Camden NoDa – Charlotte, NC
Slide 2: Table of Contents
Camden Central – St. Petersburg, FL Table of Contents Company Overview 3‐5 2023 Highlights & Guidance 6‐12 Multifamily Fundamentals 13‐17 Camden’s Portfolio 18‐22 Real Estate Transactions 23‐29 Capital Structure & Liquidity 30‐31 Other Initiatives 32‐34 Appendix 35‐40 FORWARD‐LOOKING STATEMENTS – In
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 $16B 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: 2023 Highlights & Guidance
Camden North End II – Phoenix, AZ 2023 Highlights & Guidance 6
Slide 7: 2023 Highlights
2023 Highlights • Stabilized two development communities in Tempe, AZ and Southeast FL for a total cost of $207.9 million • Commenced leasing of one development community in Charlotte, NC with a total estimated cost of $108.0 million • Delivered 2Q23 same‐store revenue growth of 6.1% and NOI growth
Slide 8: Operating Statistics
Operating Statistics (Results for 2023 same property pool) Same Property Occupancy 2Q23 Jul 2023 Aug 2023 Jul 2022 Aug 2022 Occupancy 95.4% 95.6% 95.8% 96.7% 96.7% Same Property New Lease and Renewal Data – Date Signed(1) 2Q23 Jul 2023 Aug 2023 Jul 2022 Aug 2022 New Lease Rates 2.2% 1.4% 0.0% 13.0%
Slide 9: New Leases & Renewals – Signed & Effective
New Leases & Renewals – Signed & Effective (Results for 2023 and 2022 reflect current same property pool of 48,137 units; Results for 2021 reflect former same property pool of 46,151 units) New Leases & Renewals – Date Signed DATE SIGNED(1) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23* 24.
Slide 10: Blended Lease Gains by Market
Blended Lease Gains by Market (Results for 2023 same property pool) 3Q23 Blended Rates Effective*(1) San Diego / Inland Empire Orlando Washington DC Denver Above Average Raleigh Charlotte Houston Nashville Total Portfolio Average: 3.9% Southeast Florida Tampa / St Petersburg LA / Orange County Below
Slide 11: Same Property Occupancy by Market
Same Property Occupancy by Market (Results for 2023 and 2022 reflect current same property pool; Results for 2021 reflect former same property pool) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23* Atlanta 96.6% 97.4% 97.4% 96.8% 97.0% 97.0% 96.6% 95.4% 94.3% 94.2% 95.2% Austin 96.0% 97.2% 97
Slide 12: 2023 Guidance
2023 Guidance (as of 8/3/23) EARNINGS LOW MIDPOINT HIGH EPS per share $2.07 $2.12 $2.17 FFO per share $6.80 $6.85 $6.90 Core FFO per share $6.83 $6.88 $6.93 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 5.15% 5.65% 6.15% Expense Growth 6.35% 6.85% 7.35% NOI Growth 4.00% 5.00% 6.00% 12
Slide 13: Multifamily Fundamentals
Camden Downtown – Houston, TX Multifamily Fundamentals 13
Slide 14: Multifamily Supply
Multifamily Supply • Starts should begin to decline in 2023 and completions are expected to peak in late 2024 • For completions expected in CPT markets during 2023‐2024, <20% of the new supply is located in submarkets where CPT operates newer assets (<15 years old) and thus may be competitive on a p
Slide 15: 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 more than 67 million and will remain a 60 steady source of demand in 55 the near term 50 1991 1993 1995 1997 1999 2001 2003 2005 2
Slide 16: Young Adults Making Lifestyle Decisions Later
Young Adults Making Lifestyle Decisions Later Young Adult Lifestyle Choices Young Adult Households 38 60% 36 50% 34 32 40% 30 Age 28 30% 26 20% 24 22 10% 20 0% 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 1990 2000 2010 2020 2021 Marriage First Child First Home Purchase
Slide 17: Higher Propensity to Rent
Higher Propensity to Rent Propensity to Rent Apartments Moveout Rates for Home Purchases • Many people still choosing to by Age Camden’s Portfolio rent rather than buy 50% 30% • Higher propensity to rent in 40% 20% CPT markets vs. U.S. average 30% 20% 10% • Homeownership rate overall 10% remains nea
Slide 18: Camden's Portfolio
Camden Tempe II – Tempe, AZ Camden’s Portfolio 18
Slide 19: Portfolio Statistics
Asset Class* Portfolio Statistics (as of 2Q23) 38% NOI Contribution by Market (includes all operating communities) 62% Class A Class B Washington DC Metro Location* 12.5% Raleigh Denver Charlotte 4.9% Los Angeles/Orange County Nashville 5.6% 5.4% 5.8% 1.5% Phoenix 41% 8.5% San Diego/Inland Empire 4.
Slide 20: 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 ~ $120K for New 10% 0% Move‐Ins in 3Q23 to date 0‐17 18‐24 25‐34 35‐44 45‐64 65+ • Average Rent‐to‐Income Ratio of 20% for New Move‐ Total Nu
Slide 21: Focus on High-Growth Markets
Focus on High‐Growth Markets Population Growth Employment Growth Total Migration Estimated Gain 2023‐2025 Estimated Gain 2023‐2025 Actual 2021‐2022 1 Dallas 275,000 1 Dallas 157,000 1 Phoenix 143,000 2 Houston 245,000 2 New York City 147,000 2 Dallas 113,000 3 Atlanta 240,000 3 Austin 117,000 3 Aust
Slide 22: Earnings & Dividend Growth
Earnings & Dividend Growth Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Dividends $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 (1) (2) (3) 2018 2019 2020 2021 2022 2023F FFO per share AFFO per share Dividends per share (1) Includes $0.12 per share charge relat
Slide 23: Real Estate Transactions
Camden Franklin Park – Franklin, TN Real Estate Transactions 23
Slide 24: Capital Recycling
Capital Recycling ($ 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(1) $3.5B Total $4.2B Total Dispositions Developments(2) Average Age of 23 years(4) Average Age of
Slide 25: Development Value Creation
Development Value Creation Development Communities Completed and Stabilized (2011‐2023) Communities 40 Apartment Homes 12,095 Total Cost $2.9B Market Value* $4.2B Value Creation $1.3B Camden NoMa II – Washington D.C • Year Built 2018 Camden Cypress Creek II – Cypress, TX • Year Built 2021 Camden Lak
Slide 26: Development Communities
Development Communities CURRENT DEVELOPMENT COMMUNITIES ESTIMATED Total Total Cost Construction Initial Construction Stabilized Name Location % Leased(1) Homes ($ in millions) Start Occupancy Completion Operations Camden NoDa Charlotte, NC 387 $108 3Q20 1Q23 4Q23 3Q24 71% Camden Durham Durham, NC 42
Slide 27: Current Development Communities
Current Development Communities Camden NoDa – Charlotte, NC Camden Village District – Raleigh, NC Camden Durham – Durham, NC 27
Slide 28: Current SFR Development Communities
Current SFR Development Communities Camden Woodmill Creek – The Woodlands, TX Camden Long Meadow Farms – Richmond, TX 28
Slide 29: Reposition/Redevelopment/Repurpose Programs
Reposition/Redevelopment/Repurpose Programs (results for total portfolio include former JV communities) Reposition: Renovate well‐located 15‐ to 20‐year‐ Redevelopment: Upgrade 10‐ to 15‐year‐old old assets by updating kitchen and bath areas, mid‐rise and high‐rise assets with reposition appliances,
Slide 30: Capital Structure & Liquidity
Camden Victory Park – Dallas, TX Capital Structure & Liquidity 30
Slide 31: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 8/31/23) Total Market Cap = $16B Strong Credit Ratings • 4.2% weighted average Unsecured Senior Unsecured interest rate on all debt Term Loans Notes Moody’s $340 $2,536 • 77.4% fixed rate debt Unsecured Credit A3 • 91.1% unsecured debt Facility Stable
Slide 32: Other Initiatives
Camden Buckhead Square – Atlanta, GA Other Initiatives 32
Slide 33: Technology
TECHNOLOGY Camden invests in innovation to increase revenues, reduce expenses, and enhance our residents’ living experience. Smart Centralization Bilt Access Mobile Peer Invest in Bulk Mainten‐ Enhance Space PropTech(1) Wi‐Fi ance ESG Optimize Adopt Control Increase Excel in Price New Tech Expenses
Slide 34: 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 and integrating sustainable practices into all aspects of our business. We strive to operate in an environmentally responsib
Slide 35: Appendix
Camden Highland Village Houston, TX Appendix 35
Slide 36: 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 37: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations Reconciliation of FFO, Core FFO, and Core AFFO per share Three Months Ended June 30, Six Months Ended June 30, FFO/ADJUSTED FFO PER SHARE 2023 2022 2023 2022 Total Earnings Per Common Share ‐ Diluted $0.84 $4.54 $1.22 $5.37 Real estate deprec
Slide 38: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations Expected FFO & Core FFO Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings
Slide 39: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations EBITDAre and Adjusted EBITDAre Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance wit
Slide 40: Other Definitions
Other Definitions Core FFO: Represents FFO as further adjusted for items not considered part of our core business operations, such as casualty‐related expenses, net of (recoveries), severance, legal costs, loss on early retirement of debt, expensed development and other pursuit costs, net below mark
Slide 41: Camden
CAMDEN. ~ 41
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