Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (March 2024)
40 slides from Camden Property Trust's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
Investor Presentation March 2024 Camden Durham – Durham, NC
Slide 2: Table of Contents
Camden North End – Phoenix, AZ Table of Contents Company Overview 3‐15 2024 Guidance & Recent Updates 16‐24 Multifamily Fundamentals 25‐29 Other Information 30‐33 Appendix 34‐39 FORWARD‐LOOKING STATEMENTS – In addition to historical information, this presentation contains forward‐looking statements
Slide 3: Company Overview
Camden Buckhead– Atlanta, GA Company Overview 3
Slide 4: Camden's Strategy
Camden’s Strategy • Focus on high‐growth markets (employment, population, migration) • Deliver consistent earnings and dividend growth • Operate a diverse portfolio of assets (geographical, A/B, urban/suburban) and maintain a high‐quality resident profile • Recycle capital and create value through a
Slide 5: Focus on High-Growth Markets
Focus on High‐Growth Markets Employment Growth Population Growth Total Migration Estimated Gain 2024‐2026 Estimated Gain 2024‐2026 Actual 2022‐2023 1 Dallas 183,000 1 Houston 341,000 1 Dallas 149,000 2 Houston 142,000 2 Dallas 295,000 2 Phoenix 132,000 3 Phoenix 137,000 3 Atlanta 250,000 3 Atlanta 1
Slide 6: Earnings & Dividend Growth
Earnings & Dividend Growth $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 (1) (3) 2018 2019 2020 (2) 2021 2022 2023 2024F (4) Dividends per share AFFO per share FFO per share (1) Includes $0.12 per share non‐core charge related to the early redemption and prepayment of debt. (2) Includes $0.15 per
Slide 7: Diverse Portfolio
Asset Class* Diverse Portfolio (as of 4Q23) 38% NOI Contribution by Market (includes all operating communities) 62% Class A Class B Washington DC Metro Location* 12.8% Raleigh Denver Charlotte 4.8% Los Angeles/Orange County Nashville 5.7% 5.4% 4.1% 1.3% Phoenix 42% 8.8% San Diego/Inland Empire 4.3%
Slide 8: 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 ~ $122K for New 10% 0% Move‐Ins in 4Q23 0‐17 18‐24 25‐34 35‐44 45‐64 65+ • Average Rent‐to‐Income Ratio of 19% for New Move‐ Total Number of
Slide 9: Capital Recycling
Capital Recycling ($ 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) $2.7B Total Acquisitions(2) Average Age of 4 Years(4) $3.7B Total $3.9B Total Dispositions Deve
Slide 10: 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* $3.9B Value Creation $1.0B Camden NoDa – Year Built 2023 Camden RiNo • Year Built 2020 Camden Lake Eola • Year Built 2021 *Estimated market val
Slide 11: Development Communities
Development Communities CURRENT DEVELOPMENT PIPELINE ESTIMATED/ACTUAL Name Location Total Total Cost Construction Initial Construction Stabilized Operations Homes ($ in millions) Start Occupancy Completion % Leased(1) Camden NoDa Charlotte, NC 387 $108 3Q20 1Q23 4Q23 1Q24 98% Camden Durham Durham, N
Slide 12: Current Development Communities
Current Development Communities Camden NoDa – Charlotte, NC Camden Durham – Durham, NC Camden Village District – Raleigh, NC 12
Slide 13: Current BTR Development Communities
Current BTR Development Communities Camden Woodmill Creek – The Woodlands, TX Camden Long Meadow Farms – Richmond, TX 13
Slide 14: Reposition/Redevelopment/Repurpose Programs
Reposition/Redevelopment/Repurpose Programs (results for total portfolio include former JV communities) Reposition: Renovate well‐located 15‐ to 20‐year‐old assets by updating kitchen and bath areas, appliances, flooring, fixtures, lighting, etc. Redevelopment: Upgrade 10‐ to 15‐year‐old mid‐rise an
Slide 15: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 2/29/24) Total Market Cap = $14B Credit Ratings • $1.2B available under $1.2B Unsecured unsecured credit facility Term Loans Senior Unsecured Moody’s $40 Notes • Unencumbered asset pool of $3,183 approximately $16B A3 Stable • 90.7% unsecured debt Secu
Slide 16: 2024 Guidance & Recent Updates
Camden Tuscany – San Diego, CA Camden Lincoln Station – Denver, CO 2024 Guidance & Recent Updates 16
Slide 17: 2024 Guidance
2024 Guidance (as of 2/1/24) EARNINGS LOW MIDPOINT HIGH EPS per share $1.72 $1.87 $2.02 FFO per share $6.54 $6.69 $6.84 Core FFO per share $6.59 $6.74 $6.89 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 0.50% 1.50% 2.50% Expense Growth 3.75% 4.50% 5.25% NOI Growth (1.50)% 0.00% 1.50% RE
Slide 18: 2024 Same Property Revenue & Expense Drivers
2024 Same Property Revenue & Expense Drivers (as of 2/1/24) Guidance Midpoint Earn in 0.5% Annual market rental rate growth of 1.4% ÷ 2 0.7% Net Market Rent Growth 1.2% Occupancy Change 0.0% Reduction in Bad Debt 0.3% Incremental Other Income 0.0% 2024 Same Property Revenue Growth (midpoint of guida
Slide 19: Recent Highlights
Recent Highlights • Closed over $1.2 billion in refinancing and sales transactions, resulting in no current balances outstanding under line of credit and only $290 million of debt maturing in 2024‐2025 • Increased dividend by 3% to an annualized rate of $4.12 per share • Repurchased 150,300 shares a
Slide 20: Same Property Occupancy by Market
Same Property Occupancy by Market (Results reflect 2024 same property pool of 55,866 units) 1Q23 2Q23 3Q23 4Q23 1Q24* Atlanta 94.4% 94.2% 94.1% 92.9% 93.6% Austin 95.0% 94.7% 95.7% 94.4% 93.5% Charlotte 94.8% 95.4% 95.6% 94.7% 93.5% Dallas 95.0% 95.5% 95.4% 94.3% 94.4% Denver 95.8% 96.3% 96.6% 96.4%
Slide 21: Operating Statistics
Operating Statistics (Results reflect 2024 same property pool of 55,866 units) Same Property Occupancy Jan 2024 Feb 2024(3) Jan 2023 Feb 2023 Occupancy 94.9% 94.9% 95.4% 95.3% Same Property New Lease and Renewal Data – Date Signed*(1) Jan 2024 Feb 2024(3) Jan 2023 Feb 2023 New Lease Rates (3.8)% (5.
Slide 22: New Leases & Renewals – Signed & Effective
New Leases & Renewals – Signed & Effective (Results reflect 2024 same property pool of 55,866 units) DATE SIGNED(1) 1Q23 2Q23 3Q23 4Q23 1Q24(3) New Leases & Renewals – Date Signed 7.0% New Lease Rates 2.0% 2.4% 0.2% (4.1)% (4.6)% 3.0% (1.0%) Renewal Rates 7.0% 6.0% 5.0% 3.9% 3.5% (5.0%) 1Q24* 1Q23 2
Slide 23: Blended Lease Gains by Market
Blended Lease Gains by Market (Results reflect 2024 same property pool of 55,866 units) 1Q24 Blended Rates Effective*(1)(2) San Diego / Inland Empire 4% Washington DC Southeast Florida 4$ Denver Phoenix Houston Tampa / St Petersburg Orlando Charlotte LA / Orange County Raleigh Nashville Dallas / Ft
Slide 24: Progress of High Balance Delinquencies
Progress of High Balance Delinquencies (defined as units delinquent three months or more) • Steady progress made toward reducing the number of high balance delinquent units • Currently the lowest number of high balance delinquent units since the pandemic 900 1.8% 800 1.6% # of High Balance Delinquen
Slide 25: Multifamily Fundamentals
Camden Atlantic – Plantation, FL Multifamily Fundamentals 25
Slide 26: Multifamily Supply
Multifamily Supply • Starts began to fall in mid‐2023 and are expected to decline another 50% by 2025 • Completions are expected to peak in mid‐2024 and decline significantly in 2025 Multifamily Starts (Historical and Projected) Multifamily Completions (Historical and Projected) 600,000 700,000 500,
Slide 27: 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 55 50 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 201
Slide 28: 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 29: Young Adults Making Lifestyle Decisions Later
Young Adults Making Lifestyle Decisions Later Young Adult Lifestyle Choices • Young adults choosing to 38 36 marry and have children 34 32 later in life, delaying 30 Age 28 homeownership decisions 26 24 22 20 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 • More households across Marriage Fi
Slide 30: Other Information
Camden Cypress Creek – Houston, TX Other Information 30
Slide 31: Workplace Excellence
Workplace Excellence Recognized by FORTUNE Experienced management Magazine as one of the team with sound business 100 Best Companies to plan and proven history of Work For® in America for performance 16 consecutive years, recently ranking #33 #1 FORTUNE – Best Workplaces in Real Estate 2023 #3 GPTW
Slide 32: 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 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: Appendix
Camden Pier District – Tampa, FL Appendix 34
Slide 35: 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 36: 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 December 31, Twelve Months Ended December 31, FFO/Core FFO/Core AFFO per share 2023 2022 2023 2022 Total Earnings Per Common Share ‐ Diluted $2.03 $0.42 $3.70 $6.04 R
Slide 37: 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 38: 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 39: Other Definitions
Other Definitions Bad Debt: Represents bad debt expense and reserves as a percentage of rental revenues. 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
Slide 40: CAMDEN. ~
CAMDEN. ~ 40
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