Mason Marion

Mason Marion asked why Camden Property Trust's guidance for revenue-enhancing and repositioning CapEx is lower than last year and what specific initiatives are being pursued within this category.

Answer

President and CFO Alex Jessett explained that the slight decrease in repositioning CapEx is due to having completed 70%-80% of the portfolio, resulting in fewer remaining opportunities. He reiterated that it remains a highly effective use of capital and will continue.

Mason Marion asked why the revenue-enhancing and repositioning CapEx guidance is lower than last year and what initiatives are currently underway in this category.

Answer

Alex Jessett, President and CFO, explained that the slight decrease is due to having repositioned 70-80% of the portfolio, leading to fewer remaining opportunities. He reiterated that repositioning remains one of the best uses of capital and the company plans to continue these efforts.

Mason Marion inquired about the assumptions for churn and Net Revenue Retention (NRR) in the 2025 outlook, given the subdued housing market. He also asked for initial feedback on the new AI-Deterrent product and its potential to drive video penetration.

Answer

CEO Stephen Trundle expects the SaaS revenue retention rate to remain strong around the 95% level, supported by lower customer churn from a soft housing market and a trend of new, stickier customers adopting higher-ARPU services. Regarding the AI-Deterrent product, he noted strong enthusiasm from partners and believes its novel capabilities can make remote video monitoring a mass-market offering, ultimately driving higher video penetration, though channel adoption will take time.

Mason Marion inquired about the primary drivers of the strong 95% net revenue retention rate, asking if it was mainly due to lower churn from a slow housing market or also from improved cross-selling. He also requested an update on the EBS integration, its early feedback, and any benefits being realized.

Answer

CFO Steve Valenzuela and CEO Stephen Trundle attributed the strong retention to a combination of factors. They confirmed that reduced subscriber moves in a slower housing market is a primary driver of lower churn. However, they also highlighted that compelling video analytics offerings are increasing daily user engagement and that upselling customers to video or advanced analytics packages also contributes positively. Regarding EBS, Trundle stated the integration is nearing rollout and is expected to add 40,000 to 50,000 international subscribers in the next year that the company would not otherwise capture.

Mason Marion, on for Samad Samana, asked for details on the components of the 9% recurring revenue guidance, including assumptions for macro conditions, pricing, and retention, and also inquired about expectations for the Client Relations Representative (CRR) team in 2025.

Answer

An executive, likely incoming CFO Bob Foster, stated the guidance is based on onboarding new clients at higher revenue rates with no new underlying assumptions. Retiring CFO Craig Boelte added that they do not factor in macro impacts. CEO Chad Richison emphasized that the entire organization, including the CRR team, is focused on client satisfaction and ROI, noting the team's continued strength.