Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (November 2024)
36 slides from Camden Property Trust's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024 Camden Cypress Creek II – Cypress, TX
Slide 2: Table of Contents
Table of Contents Company Overview 3-15 2024 Guidance & Recent Updates 16-20 Multifamily Fundamentals 21-25 Other Information 26-29 Appendix 30-35 Camden Main and Jamboree – Irvine, CA FORWARD-LOOKING STATEMENTS – In addition to historical information, this presentation contains forward-looking stat
Slide 3: Company Overview
Camden Grand Parc – Washington, DC 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 New York City 289,000 1 Houston 602,000 1 Dallas 149,000 2 Houston 154,000 2 Dallas 465,000 2 Phoenix 132,000 3 Dallas 140,000 3 Atlanta 352,000 3 Atl
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) 2020 2021 2022 2023 2024F Dividends per share Core AFFO per share Core FFO per share (1) Based on midpoint of 2024 guidance provided on 10/31/24 and announced 3Q24 annualized dividend rate. 6
Slide 7: Diverse Portfolio
Asset Class* Diverse Portfolio (as of 3Q24) 62% NOI Contribution by Market (includes all operating communities) 38% Class A Class B Location* Washington DC Metro 13.2% Raleigh Denver Charlotte 4.9% Los Angeles/Orange County 5.7% Nashville 6.0% 4.4% Phoenix 1.4% 58% 8.5% San Diego/Inland Empire 42% 4
Slide 8: Camden Resident Profile
Camden Resident Profile Age Range of Camden Residents • Median Age: 31 years 50% 40% • Average Annual Household 30% Income of ~ $122K for New 20% Move-Ins in 2024 to date 10% 0% • Average Rent-to-Income 0-17 18-24 25-34 35-44 45-64 65+ Ratio of 19% for New Move-Ins in 2024 to date Total Number of Oc
Slide 9: Capital Recycling
Capital Recycling ($ 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(5) $3.8B Total $4.2B Total Dispositions Deve
Slide 10: Development Value Creation
Development Value Creation Development Communities Completed and Stabilized (2011-2024) Communities 41 Apartment Homes 12,482 Total Cost $3.0B Market Value* $4.2B Value Creation $1.2B Camden Flatirons – Year Built 2015 Camden Cypress Creek II – Year Built 2020 Camden Paces – Year Built 2015 * Estima
Slide 11: Development Communities
Development Communities Current Development Pipeline Estimated/Actual Total Total Cost Construction Initial Construction Stabilized % Name Location Homes ($ in millions) Start Occupancy Completion Operations Leased(1) Camden Woodmill Creek Spring, TX 189 $72 3Q22 4Q23 2Q24 2Q25 79% Camden Durham Dur
Slide 12: Current Development Communities
Current Development Communities Camden Durham – Durham, NC Camden Village District – Raleigh, NC Camden South Charlotte – Charlotte, NC Camden Blakeney – Charlotte, NC 12
Slide 13: Current BTR Development Communities
Current BTR Development Communities Camden Long Meadow Farms – Richmond, TX Camden Woodmill Creek – Spring, TX 13
Slide 14: Reposition/Redevelopment/Repurpose Programs
Reposition/Redevelopment/Repurpose Programs Reposition: Renovate well-located 15- to 20-year-old assets by updating kitchen and bath areas, appliances, flooring, fixtures, lighting, etc. Over 45,000 apartment homes completed through 3Q24 with a total cost of $741 million. Redevelopment: Upgrade 10-
Slide 15: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 9/30/24) Total Market Cap = $17B Credit Ratings • $1.0B available under $1.2B Unsecured Senior Unsecured Notes Term Loans unsecured credit facility $40 $2,944 Unsecured Moody’s Credit • Unencumbered asset pool Facility A3 of approximately $17B $138 Sta
Slide 16: 2024 Guidance & Recent Updates
Camden Carolinian – Raleigh, NC 2024 Guidance & Recent Updates 16
Slide 17: 2024 Guidance
2024 Guidance (as of 10/31/24) Earnings Low Midpoint High EPS per share $1.46 $1.48 $1.50 FFO per share $6.67 $6.69 $6.71 Core FFO per share(1) $6.79 $6.81 $6.83 (1) The Company's 2024 core FFO guidance excludes approximately $0.12 per share of non-core charges for casualty-related expenses, severan
Slide 18: 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 2Q24 3Q24 4Q24* Atlanta 94.4% 94.2% 94.1% 92.9% 93.7% 94.1% 94.9% 94.3% Austin 95.0% 94.7% 95.7% 94.4% 93.7% 94.1% 94.7% 94.1% Charlotte 94.8% 95.4% 95.6% 94.7% 93.6% 94.8% 95.5% 95.4
Slide 19: New Leases & Renewals – Signed & Effective
New Leases & Renewals – Signed & Effective (Results reflect 2024 same property pool of 55,866 units) New Leases & Renewals – Date Signed Date Signed(1) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24* 7.0% New Lease Rates 2.0% 2.4% 0.2% (4.1)% (4.1)% (1.8)% (2.8)% (4.8)% 3.0% (1.0%) Renewal Rates 7.0% 6.0%
Slide 20: Bad Debt & High Balance Delinquencies
Bad Debt & High Balance Delinquencies • Net bad debt declined to approximately 0.8% in 2024 • Steady progress made in reducing high balance delinquencies Net Bad Debt – Same Property High Balance Delinquencies (as a % of rental revenues) (# of units delinquent ≥ 3 months at end of period) 1.6% 800 1
Slide 21: Multifamily Fundamentals
Camden La Frontera – Austin, TX Multifamily Fundamentals 21
Slide 22: Multifamily Supply
Multifamily Supply • Starts began to fall in 2023 and are expected to decline by more than 50% by 2025 • Completions are expected to peak in late 2024, then decline in 2025 and 2026 Multifamily Starts Multifamily Completions (Historical and Projected) (Historical and Projected) 700,000 700,000 600,0
Slide 23: Strong Demand for Multifamily Rental Housing
Strong Demand for Multifamily Rental Housing Favorable Demographic Trends – Aged 20 to 34 Nearly 70% of this age group choose to rent 75 Young adults currently 70 in millions number more than 69 65 60 million and will remain a 55 growing source of demand 50 Share of Young Adults Living at Home 20% P
Slide 24: Higher Propensity to Rent
Higher Propensity to Rent Propensity to Rent Apartments Moveout Rates for Home Purchases • Many people still choose to rent by Age Camden’s Portfolio rather than buy with higher 50% 30% propensity to rent in CPT 40% 20% markets vs. U.S. average 30% 20% 10% • Homeownership rate overall 10% 0% remains
Slide 25: Young Adults Making Lifestyle Decisions
Young Adults Making Lifestyle Decisions Young Adult Lifestyle Choices • Young adults choosing to 38 36 marry and have children 34 32 later in life, delaying 30 Age 28 26 homeownership decisions 24 22 20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 26: Other Information
Camden Henderson – Dallas, TX Other Information 26
Slide 27: Workplace Excellence
Workplace Excellence Recognized by FORTUNE Magazine as one of the 100 Best Companies to Work For® in America for 17 consecutive years, recently ranking #24. Experienced management team with sound business plan and proven history of performance. #1 GPTW – FORTUNE Best Workplaces in Real Estate 2024 #
Slide 28: 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 29: Technology
Technology Camden invests in innovation to increase revenues, reduce expenses, and enhance our residents’ living experience. Smart Centralization Bilt Access Peer Invest in Bulk Mobile Focus on Space PropTech(1) Wi-Fi Maintenance Sustainability Adopt Control Increase Excel in Optimize Customer Price
Slide 30: Appendix
Camden Royal Palms – Brandon, FL Appendix 30
Slide 31: 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 32: 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 September 30, Nine Months Ended September 30, FFO/Core FFO/Core AFFO per share 2024 2023 2024 2023 Total Earnings Per Common Share - Diluted $(0.04) $0.44 $1.13 $1.66
Slide 33: 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 34: 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 35: 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 and settle
Slide 36: CAMDEN
CAMDEN 36
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