Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$83.98Last close (Oct 27, 2023)
Post-Earnings Price$83.98Last close (Oct 27, 2023)
Price Change
$0.00(0.00%)
- CPT has a strong balance sheet and is well-positioned to capitalize on future opportunities as development costs decrease and market conditions improve.
- CPT's recent developments, such as Tempe II in Phoenix and Camden NoDa in Charlotte, are leasing up successfully even in competitive markets, demonstrating strong operational performance.
- With only 16% of Camden's communities being impacted by new supply, the majority of their portfolio remains resilient, minimizing the effect of increased competition.
- Elevated bad debts and skips/evictions are negatively impacting Camden's financial performance, particularly in markets like California and Atlanta, where bad debts are as high as 5.3% in LA County and 3.2% in San Diego. These issues are due to tenants who can pay but won't pay, and regulatory challenges in evicting non-payers.
- Supply challenges are impacting Camden's portfolio, with 16% of communities being affected by new supply, leading to lower new lease rates by 310 basis points compared to non-impacted communities in Q3. This supply impact is expected to continue through 2024, potentially pressuring rental growth and occupancy further.
- Increased cost of capital has led Camden to delay development starts and be cautious on acquisitions, recognizing that it doesn't make sense to underwrite transactions in the current environment, which may limit growth prospects in the near term.