Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (March 2023)
40 slides from Camden Property Trust's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Camden Atlantic – Plantation, FL Investor Presentation March 2023
Slide 2: Table of Contents
Camden Central – St. Petersburg, FL Table of Contents Company Overview 3‐5 2022 Highlights & 2023 Guidance 6‐12 Multifamily Fundamentals 13‐17 Camden’s Portfolio 18‐22 Real Estate Transactions 23‐29 Capital Structure & Liquidity 30‐31 Other Initiatives 32‐35 Appendix 36‐40 FORWARD‐LOOKING STATEMENTS
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: 2022 Highlights & 2023 Guidance
Camden North End II – Phoenix, AZ 2022 Highlights & 2023 Guidance 6
Slide 7: 2022 Highlights
2022 Highlights • Delivered record levels of same‐store revenue growth at 11.2% and NOI growth at 14.6% • Achieved FFO per share of $6.59 and paid dividends of $3.76 per share, both the highest levels in company history • Increased capacity on company’s unsecured line of credit from $900 million to
Slide 8: Operating Statistics
Operating Statistics (Results for 2023 same property pool) Same Property Occupancy Jan 2023 Feb 2023 Jan 2022 Feb 2022 Occupancy 95.3% 95.3% 97.1% 97.0% Same Property New Lease and Renewal Data – Date Signed(1) Jan 2023 Feb 2023 Jan 2022 Feb 2022 New Lease Rates 2.1% 2.0% 16.5% 14.7% Renewal Rates 7
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* 24.0% 20.0% 1
Slide 10: 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* Jan 2023 Feb 2023 Atlanta 96.6% 97.4% 97.4% 96.8% 97.0% 97.0% 96.6% 95.4% 94.5% 94.4% 94.5% Austin 96.0%
Slide 11: 2023 Guidance
2023 Guidance (as of 2/2/23) EARNINGS LOW MIDPOINT HIGH EPS per share $1.53 $1.68 $1.83 FFO per share $6.70 $6.85 $7.00 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 4.10% 5.10% 6.10% Expense Growth 4.75% 5.50% 6.25% NOI Growth 3.50% 5.00% 6.50% FUTURE 2023 TRANSACTIONS LOW MIDPOINT HIG
Slide 12: 2023 Same Property Revenue & Expense Drivers
2023 Same Property Revenue & Expense Drivers (as of 2/2/23) Expected % of Total Midpoint Growth % Rev or Exp Earn in and captured loss to lease 5.0% Annual market rental rate growth ÷ 2 3.0% 1.5% Net Market Rent Growth 6.5% Economic Occupancy (1.0%) Rental Income Growth 5.5% Contribution from rental
Slide 13: Multifamily Fundamentals
Camden Downtown – Houston, TX Multifamily Fundamentals 13
Slide 14: Multifamily Supply
Multifamily Supply • Starts should decline in the coming years • Completions expected to peak in 2024 • ~40% of new supply in CPT markets is located in submarkets where we operate, and less than half of that supply may be competitive in price with our communities Multifamily Supply (Historical and 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 almost 68 million and will remain a steady 60 source of demand in the 55 near term 50 1993 1995 1997 1999 2001 2003 2005 2007 2009
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 4Q22) 37% NOI Contribution by Market (includes all operating communities) 63% Class A Class B Washington DC Metro Location* 12.3% Raleigh Denver Charlotte 5.0% Los Angeles/Orange County Nashville 5.8% 5.3% 6.1% 1.4% Phoenix 41% 8.1% San Diego/Inland Empire 3.
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 ~ $118K for New 10% 0% Move‐Ins in 4Q22 0‐17 18‐24 25‐34 35‐44 45‐64 65+ • Average Rent‐to‐Income Ratio of 20% for New Move‐ Total Number of
Slide 21: 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 275,000 1 New York City 325,000 1 Phoenix 164,000 2 Phoenix 223,000 2 Dallas 209,000 2 Dallas 114,000 3 Dallas 221,000 3 Houston 152,000 3 Aus
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 $0.00 (1) (2) (3) (4) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FFO per share AFFO per share Dividends per share (1)
Slide 23: Real Estate Transactions
Camden Franklin Park – Franklin, TN Real Estate Transactions 23
Slide 24: Capital Recycling
Capital Recycling ($ 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) $3.4B Total $4.1B 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 (2011‐2022) Communities 38 Apartment Homes 11,429 Total Cost $2.7B Market Value* $4.1B Value Creation $1.4B Camden NoMa II – Washington D.C • Year Built 2018 Camden Cypress Creek II – Cypress, TX • Year Built 2021 Camden Lak
Slide 26: Development Communities
Development Communities CURRENT DEVELOPMENT COMMUNITIES ESTIMATED Total Total Cost Construction Initial Construction Stabilized Name Location % Leased(1) Homes ($ in millions) Start Occupancy Completion Operations Camden Atlantic Plantation, FL 269 $100 3Q20 3Q22 4Q22 2Q23 97% Camden Tempe II Tempe,
Slide 27: Current Development Communities
Current Development Communities Camden Atlantic – Plantation, FL Camden NoDa – Charlotte, NC Camden Tempe II – Tempe, AZ Camden Village District – Raleigh, NC Camden Durham – Durham, NC 27
Slide 28: Current SFR Development Communities
Current SFR Development Communities Camden Woodmill Creek – The Woodlands, TX Camden Long Meadow Farms – Richmond, TX 28
Slide 29: Reposition/Redevelopment/Repurpose Programs
Reposition/Redevelopment/Repurpose Programs (results for total portfolio include former JV communities) Reposition: Renovate well‐located 15‐ to 20‐year‐ Redevelopment: Upgrade 10‐ to 15‐year‐old old assets by updating kitchen and bath areas, mid‐rise and high‐rise assets with reposition appliances,
Slide 30: Capital Structure & Liquidity
Camden Victory Park – Dallas, TX Capital Structure & Liquidity 30
Slide 31: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 2/28/23) • 4.1% weighted average Total Market Cap = $16B Strong Credit Ratings interest rate on all debt Unsecured Senior Unsecured Moody’s Term Loans Notes $2,785 • 82.6% fixed rate debt $340 Unsecured A3 • 86.3% unsecured debt Credit Stable Facility
Slide 32: Other Initiatives
Camden Buckhead Square – Atlanta, GA Other Initiatives 32
Slide 33: Technology
Technology • Smart apartment and building installations to improve customer experience, enhance security, reduce expenses, provide efficiencies for maintenance teams, and facilitate self‐guided tours • Improved sales process with Funnel, a customer‐ centric Artificial Intelligence (AI) platform that
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility 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 ESG Highlights – Environmental We st
Slide 35: ESG Highlights – Social & Governance
ESG Highlights – Social & Governance • Sustainability Committee led by Camden’s senior executive team • Board oversight of sustainability by Nominating & Corporate Governance Committee Board Composition Employees with title of Manager or higher Female 64% (as of 12/31/22) Male 36% 6.6 YRS 11.0 YRS A
Slide 36: Appendix
Camden Highland Village Houston, TX Appendix 36
Slide 37: 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 38: 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 39: 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 40: Camden
CAMDEN. ~ 40
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