We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Camden (CPT) Sees Occupancy and Rent Growth Through May
Read MoreHide Full Article
Camden Property Trust (CPT - Free Report) has emerged as a resilient player in the residential REIT industry, as highlighted by its operational statistics for the second quarter of 2023.
A steady increase in same-property occupancy rates — from 95.3% in the first quarter of 2023 to 95.4% in April and 95.5% in May 2023 — serves as a testament to Camden's effective tenant engagement strategy. Such high occupancy rates imply stable revenue streams and suggest a robust tenant base.
An important aspect to consider in evaluating CPT's growth is its new lease and renewal rates. From the first quarter to May 2023, the new lease rates have improved from 1.8% to 3.6%, including 2.7% in April. This increase indicates Camden's ability to attract new tenants, highlighting the competitive nature of its property portfolio. While renewal rates slightly dropped from 6.7% to 6% during the same period, they still represent a strong performance in tenant retention.
Consequently, blended rates also saw an increase, moving up from 4% in the first quarter to 4.8% in May 2023. This increment signifies Camden's capacity to negotiate higher rents without significantly compromising its occupancy rates.
In terms of effective rates — the change in rates when they become effective — the new lease rates improved from 1.7% to 3.4%, while renewal rates remained relatively stable, around 6-7%. Blended rates also showed an uptick, moving from 4.5% to 4.9%.
Conclusion
Camden Property Trust demonstrates a balanced approach to property management and growth. The consistently high occupancy rates, coupled with improved lease and renewal rates, point toward a solid operational model.
Across the United States, Camden presently owns and manages 172 properties comprising 58,702 apartment homes. With six properties currently under development, once completed, Camden's portfolio will expand to a total of 60,652 apartment homes in 178 properties.
Recently, AvalonBay Communities (AVB - Free Report) reported a 6.5% increase in same-store residential rental revenues for the two months ended May 31, 2023 compared with the prior-year period. This is roughly 80 basis points higher than the company’s most recent expectation on Apr 26, 2023.
Also, Equity Residential (EQR - Free Report) bolstered its 2023 earnings guidance, citing continued strong demand in its markets, particularly New York, and lower-than-expected delinquency rates, mainly in Southern California.
EQR lifted its normalized funds from operations per share projection to the $3.73-$3.83 band from its previous outlook in the range of $3.70-$3.80. This revision is primarily attributed to a positive impact of 3 cents, mainly from an increase in same-store net operating income. Limited new apartment supply in most of EQR's markets as well as high prices and the low availability of single-family homes were recognized as favorable factors for its outlook.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Camden (CPT) Sees Occupancy and Rent Growth Through May
Camden Property Trust (CPT - Free Report) has emerged as a resilient player in the residential REIT industry, as highlighted by its operational statistics for the second quarter of 2023.
A steady increase in same-property occupancy rates — from 95.3% in the first quarter of 2023 to 95.4% in April and 95.5% in May 2023 — serves as a testament to Camden's effective tenant engagement strategy. Such high occupancy rates imply stable revenue streams and suggest a robust tenant base.
An important aspect to consider in evaluating CPT's growth is its new lease and renewal rates. From the first quarter to May 2023, the new lease rates have improved from 1.8% to 3.6%, including 2.7% in April. This increase indicates Camden's ability to attract new tenants, highlighting the competitive nature of its property portfolio. While renewal rates slightly dropped from 6.7% to 6% during the same period, they still represent a strong performance in tenant retention.
Consequently, blended rates also saw an increase, moving up from 4% in the first quarter to 4.8% in May 2023. This increment signifies Camden's capacity to negotiate higher rents without significantly compromising its occupancy rates.
In terms of effective rates — the change in rates when they become effective — the new lease rates improved from 1.7% to 3.4%, while renewal rates remained relatively stable, around 6-7%. Blended rates also showed an uptick, moving from 4.5% to 4.9%.
Conclusion
Camden Property Trust demonstrates a balanced approach to property management and growth. The consistently high occupancy rates, coupled with improved lease and renewal rates, point toward a solid operational model.
Across the United States, Camden presently owns and manages 172 properties comprising 58,702 apartment homes. With six properties currently under development, once completed, Camden's portfolio will expand to a total of 60,652 apartment homes in 178 properties.
Currently, Camden carries a Zacks Rank of 3 (Hold). Shares of CPT have declined 2.9% against the industry’s increase of 0.1% over the past month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Recently, AvalonBay Communities (AVB - Free Report) reported a 6.5% increase in same-store residential rental revenues for the two months ended May 31, 2023 compared with the prior-year period. This is roughly 80 basis points higher than the company’s most recent expectation on Apr 26, 2023.
Also, Equity Residential (EQR - Free Report) bolstered its 2023 earnings guidance, citing continued strong demand in its markets, particularly New York, and lower-than-expected delinquency rates, mainly in Southern California.
EQR lifted its normalized funds from operations per share projection to the $3.73-$3.83 band from its previous outlook in the range of $3.70-$3.80. This revision is primarily attributed to a positive impact of 3 cents, mainly from an increase in same-store net operating income. Limited new apartment supply in most of EQR's markets as well as high prices and the low availability of single-family homes were recognized as favorable factors for its outlook.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.