Back to top

Image: Bigstock

Camden's Q3 FFO Beat, Revenues Up Y/Y, '25 View Raised

Read MoreHide Full Article

Key Takeaways

  • CPT's Q3 2025 core FFO per share of $1.70 beat estimates but dipped 0.6% year over year.
  • Same-property revenues rose 0.8%, aided by higher blended lease rates.
  • CPT raised 2025 core FFO guidance to $6.83-$6.87 per share, up 4 cents at the midpoint.

Camden Property Trust (CPT - Free Report) reported third-quarter 2025 core funds from operations (FFO) per share of $1.70, surpassing the Zacks Consensus Estimate of $1.69. However, the figure marginally declined 0.6% year over year.

The quarterly results reflect higher same-property revenues and effective blended lease rates, though higher interest expenses partly marred the growth tempo. CPT issued guidance for the fourth quarter and raised its full-year 2025 core FFO per share range.

Property revenues in the quarter came in at $395.7 million, missing the Zacks Consensus Estimate of $399.4 million. However, the figure increased 2.2% on a year-over-year basis.

CPT’s Q3 in Detail

In the reported quarter, same-property revenues increased 0.8% year over year to $374.7 million. Same-property expenses rose 2.3% to $136.8 million. As a result, the same-property NOI almost remained flat at $237.9 million.

The same-property occupancy rate came in at 95.5%, flat year over year and down 10 basis points sequentially.

In the third quarter, same-property effective blended lease rates increased 0.6%, with effective new lease rates declining 2.5%, while effective renewal rates rose 3.5% versus expiring lease rates.

Interest expenses jumped 7.7% year over year to $35 million.

CPT’s Portfolio Activity

Camden has three communities under development with a total of 1,162 units at an estimated cost of $501 million.

During the quarter, the company disposed of two operating communities comprising 626 apartment homes. One dual-phased community in Houston, TX, and the other operating community in Dallas, TX, for around $113.5 million, recording an $85.6 million gain.

CPT’s Balance Sheet Position

CPT exited the third quarter of 2025 with a liquidity of $796.3 million. This included $25.9 million in cash and cash equivalents, and around $770.4 million of availability under its unsecured credit facility and commercial paper program.

Additionally, its net debt-to-annualized adjusted EBITDAre for the July-September period was 4.2 times, up from 3.9 times in the prior-year comparable period.

During the third quarter, CPT repurchased 465,742 common shares for an aggregate amount of $50 million. The company has $400 million left under its stock repurchase program.

Q4 and 2025 Guidance Revision by CPT

For the fourth quarter of 2025, CPT expects core FFO per share in the range of $1.71-$1.75. The Zacks Consensus Estimate presently stands at $1.71, which lies at the lower end of the projected range.

For the full year, CPT raised its guidance and now expects core FFO per share in the range of $6.83-$6.87, up from the earlier projected range of $6.76-$6.86. This marked a 4-cent increase at the midpoint to $6.85. The Zacks Consensus Estimate presently stands at $6.81, within the projected range.

Management expects same-property revenue growth of 0.5-1% and an expense increase of 1.5-2%. Same-property NOI is expected between a decline of 0.25% and growth of 0.75%.

CPT’s Zacks Rank

Camden currently carries a Zacks Rank #4 (Sell).

Camden Property Trust Price, Consensus and EPS Surprise

Camden Property Trust Price, Consensus and EPS Surprise

Camden Property Trust price-consensus-eps-surprise-chart | Camden Property Trust Quote

Performance of Other Residential REITs

Equity Residential (EQR - Free Report) reported third-quarter 2025 normalized FFO per share of $1.02, meeting the Zacks Consensus Estimate. The figure also climbed 4.1% from the prior-year quarter’s tally.

Results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis.

UDR Inc. (UDR - Free Report) reported a third-quarter 2025 FFO as adjusted (FFOA) per share of 65 cents, which outpaced the Zacks Consensus Estimate of 63 cents. This also compares favorably with the prior-year quarter’s reported figure of 62 cents.

The results reflected year-over-year growth in same-store NOI, led by a higher effective blended lease rate. The company raised its 2025 FFOA midpoint per share guidance.

Note: Anything related to earnings presented in this write-up represents funds from operations (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:


Equity Residential (EQR) - free report >>

United Dominion Realty Trust, Inc. (UDR) - free report >>

Camden Property Trust (CPT) - free report >>

Published in