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Tag: Camden Property Trust

  • Here’s What to Expect From Camden Property Trust’s Next Earnings Report

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    Houston, Texas-based Camden Property Trust (CPT) engages in the ownership, management, development, repositioning, redevelopment, acquisition, and construction of multifamily apartment communities. With a market cap of $10.9 billion, Camden operates as one of the major owners of apartments in the United States.

    The real estate major is set to announce its third-quarter earnings after the market closes on Thursday, Nov. 6. Ahead of the event, analysts expect CPT to deliver core funds from operations (CFFO) of $1.69 per share, down 1.2% from $1.71 per share reported in the year-ago quarter. On a positive note, the company has surpassed the Street’s CFFO estimates in each of the past four quarters.

    For the full fiscal 2025, CPT’s CFFO per share is expected to come in at $6.81, marginally down from $6.85 reported in 2024. While in fiscal 2026, its CFFO is expected to grow 2.6% year-over-year to $6.99 per share.

    www.barchart.com

    CPT stock prices have plummeted 14.6% over the past 52 weeks, notably underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 5.6% decline and the S&P 500 Index’s ($SPX) 13.4% gains during the same time frame.

    www.barchart.com
    www.barchart.com

    Despite delivering better-than-expected results, Camden’s stock prices dipped 2.1% in the trading session following the release of its Q2 results on Jul. 31. The company’s property revenues for the quarter increased 2.4% year-over-year to $396.5 million, beating the consensus estimates by a thin margin. Meanwhile, the company’s cash flows remained under pressure, its core funds from operations (CFFO) decreased by a marginal 18 bps year-over-year to $187.6 million. However, its CFFO per share of $1.70 surpassed the Street’s estimates by 59 bps.

    The drop in CPT stock prices can be attributed to the broader market downturn observed during the trading session, due to the chaos created by President Trump’s tariff announcements.

    Analysts remain cautiously optimistic about CPT’s prospects. The stock maintains a consensus “Moderate Buy” rating overall. Of the 27 analysts covering the stock, opinions include nine “Strong Buys,” one “Moderate Buy,” 14 “Holds,” and three “Strong Sells.” Its mean price target of $121.51 suggests a 19% upside potential from current price levels.

    On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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  • More and more renters are staying put. That’s ‘not going to change anytime soon.’

    More and more renters are staying put. That’s ‘not going to change anytime soon.’

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    Bryan Tucker began looking for a starter home in the Washington, D.C., suburbs earlier this year. He soon decided it wasn’t worth it.

    In Arlington, Va., where he was looking, he found that most options he was interested in were priced over $1 million and way out of his budget. So he decided to renew his apartment lease another year.

    “I have looked,” said Tucker, a 27-year-old project manager in the tech industry. “The only options that are really affordable for me for the next year are condos.”

    Read more: What percentage of your income should go to a mortgage?

    Would-be buyers like Tucker are staying in the rental market longer as the housing market remains out of reach for many. Apartment owners have noted on recent earnings calls that the share of renters moving out to buy homes is at record lows.

    Multifamily and single-family rental REITs across the country have reported strong appetite for new and renewal leases as home ownership remains unaffordable for many. (Photo by John Tlumacki/The Boston Globe via Getty Images)

    Multifamily and single-family rental REITs across the country have reported strong appetite for new and renewal leases as home ownership remains unaffordable for many. (John Tlumacki/The Boston Globe via Getty Images) (Boston Globe via Getty Images)

    “The monthly cost of owning a home today is 61% more than leasing an apartment,” Richard Campo, CEO Camden Property Trust (CPT), a Houston-based owner of 58,000 apartment homes, said on the company’s first quarter earnings call in early May. “This is not going to change anytime soon.”

    Mortgage rates are currently hovering around 7%, continuing to make borrowing expensive for potential buyers. Higher rates have also convinced many current homeowners to delay moving since they financed their homes at lower rates. That’s kept a lid on supply and helped drive home prices sky high.

    Home prices hit fresh records in March, according to the latest data available from Case-Shiller. Economists at Bank of America expect home prices to grow 4% this year.

    Camden said that just 9.4% of move-outs in the first quarter were due to its residents buying a home — the lowest in history.

    Similarly, AvalonBay Communities (AVB), a REIT that owns nearly 80,000 apartment units, reported in its first quarter report that the share of people moving out to buy a home hit a record low, namely because of high costs of homeownership.

    “Demand for [rentals] also continues to benefit from the differential in the cost of owning a home versus renting,” Ben Schall, CEO and president at AvalonBay, said in late April to investors and analysts.

    “This is true across most of the country but particularly pronounced in our markets, given the level of home prices, resulting in it being more than $2,000 per month more expensive to own versus rent a home,” he added.

    A recent report from Redfin suggests renters are more likely to stay put for the long run than they were a decade ago. According to the company’s analysis of renter tenure data from the Census Bureau, almost 17% of renters stayed in their home for a decade or more in 2022, up from 14% 10 years ago. The trend was similar for those who lived in their homes for five to nine years — the percentage of renters doing so rose to 16% from 14%.

    “The rate environment is not looking good. That’s something that might keep the trend sticky, because mortgage rates are high and it’s not looking like they’re changing anytime soon,” Sheharyar Bokhari, Redfin senior economist, told Yahoo Finance in an interview.

    At its June policy meeting, the Federal Reserve held its benchmark rate — which affects the direction of mortgage rates — steady and projected just one rate cut this year, down from a previous forecast of three.

    To be sure, renting an apartment has become less affordable too. The median asking rent has increased 23% over the past five years, according to Redfin data.

    That has buyers like Tucker weighing their options. He found that he could reasonably afford a $1,600 to $2,000 mortgage payment, assuming he put 20% down — not too far off from what he spends in monthly payments for rent.

    “I’m fine with [renting] for now, but for the long term, eventually I would like to get a house,” Tucker said. “If that involves moving elsewhere, then I’m prepared to do that.”

    Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv.

    Click here for real estate and housing market news, reports, and analysis to inform your investing decisions.

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  • How RealPage influences rent prices across the U.S.

    How RealPage influences rent prices across the U.S.

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    RealPage software is used to set rental prices on 4.5 million housing units in the U.S. A series of lawsuits allege that a group of landlords are sharing sensitive data with RealPage, which then artificially inflates rents. The complaints surface as housing supply in the U.S. lags demand. Some of the defendant landlords report high occupancy within their buildings, alongside strong jobs growth in their operating regions and slow home construction.

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    Sat, Feb 3 20248:27 AM EST

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  • Why U.S. renters are taking corporate landlords to court

    Why U.S. renters are taking corporate landlords to court

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    A group of renters in the U.S. say their landlords are using software to deliver inflated rent hikes.

    “We’ve been told as tenants by employees of Equity that the software takes empathy out of the equation. So they can charge whatever the software tells them to charge,” said Kevin Weller, a tenant at Portside Towers since 2021.

    Tenants say the management started to increase prices substantially after giving renters concessions during the Covid-19 pandemic.

    The 527-unit building is located roughly 20 minutes away from the World Trade Center, on the shoreline of Jersey City, New Jersey. A group of tenants at the tower is involved in a sprawling class-action lawsuit against RealPage and 34 co-defendant landlords. The U.S. Department of Justice filed a statement of interest in the case in December 2023, arguing that the complaints adequately allege violations of the Sherman Antitrust Act.

    In November 2023, the attorney general of Washington, D.C., filed a similar but more narrow complaint against RealPage and 14 landlords that collectively manage more than 50,000 apartment units in the District.

    “Effectively, RealPage is facilitating a housing cartel,” said Attorney General of the District of Columbia Brian Schwalb in an interview with CNBC. His office filed the complaint on antitrust grounds. They allege that landlords share competitively sensitive data through RealPage, which then sets artificially high rents on a key slice of the local rental market.

    Office of the Attorney General for the District of Columbia, November 2023

    “Rather than making independent decisions on what the market here in D.C. calls for in terms of filling vacant units, landlords are compelled, under the terms of their agreement with RealPage, to charge what RealPage tells them,” said Schwalb.

    RealPage says its revenue management products use anonymized, aggregated data to deliver pricing recommendations on roughly 4.5 million housing units in the U.S. The company says its tools can increase landlord revenues between 2% and 7%.

    “Just turning the system on will outperform your manual analyst. There’s almost no way it can’t,” said Jeffrey Roper, a former RealPage employee and inventor of YieldStar.

    YieldStar is one of three key revenue management tools offered by RealPage. The software balances prices, occupancy and lease lengths to help property managers optimize their portfolio’s yield. The company feeds data from its models into a newer tool dubbed “AIRM” that considers the effect of credit, marketing and leasing effectiveness.

    RealPage told CNBC that its landlord customers are under no obligation to take their price suggestions. The company also said it charges a fixed fee on each apartment unit managed with its software.

    RealPage was acquired by Miami-based private equity firm Thoma Bravo for $10.2 billion in 2021. In court filings, Thoma Bravo has claimed that it is not liable for the alleged acts of its subsidiary outlined by plaintiffs in the class-action complaints.

    Renters told CNBC they discovered how revenue management software is used in real estate after reading a 2022 ProPublica investigation. Equity Residential investor materials show that the company started to experiment with Lease Rent Options between 2005 and 2008. RealPage acquired the product in 2017.

    “How could we possibly know?” said Harry Gural, a tenant in an Equity Residential property located in the Van Ness neighborhood of Washington, D.C. Gural says he has been involved in legal matters against his landlord’s pricing practices for more than seven years.

    Affiliates of Equity Residential are contesting a separate decision made by a local housing authority in Jersey City regarding prices set on the Portside Towers property. The company has filed a lawsuit in federal court challenging the decision, stating that the decision could result in millions of dollars in refunds for tenants.

    Equity Residential and other defendant landlords declined to comment on ongoing RealPage litigation.

    Redfin reports that asking rents in the U.S. ticked down to $1,964 a month in December 2023, a decline from recent highs. Prices are coming down in markets such as Atlanta and Austin, Texas, where home construction is high. But analysts believe low rates of homebuilding on the U.S. East Coast could give well-located landlords more pricing power.

    “Guys like us that own 80,000 well-located apartments, we’re still in a pretty good spot,” said Equity Residential CEO Mark Parrell in a June 2023 interview with CNBC.

    Watch the     video above to learn about the rising tide of lawsuits against U.S. corporate landlords.

    CORRECTION: A previous version of this article misstated when Equity Residential purchased Portside Towers.

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  • There is ‘enormous opportunity’ in REITs, if you choose wisely, says Gilman Hill’s Jenny Harrington

    There is ‘enormous opportunity’ in REITs, if you choose wisely, says Gilman Hill’s Jenny Harrington

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