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Camden's Q4 FFO Beats Estimates, Revenues Up Y/Y, Dividend Raised

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Key Takeaways

  • CPT posted Q4 core FFO of $1.76 per share, topping estimates as same-property revenues rose year over year.
  • CPT faced pressure from a 1.6% drop in blended lease rates and a decline in occupancy to 95.2%.
  • CPT issued below-consensus 2026 FFO guidance and announced a small dividend hike with share repurchases.

Camden Property Trust (CPT - Free Report) reported fourth-quarter 2025 core funds from operations (FFO) per share of $1.76, surpassing the Zacks Consensus Estimate of $1.73. The figure increased 1.7% year over year.

The quarterly results reflect higher same-property revenues. Lower effective blended lease rates and occupancy decline marred the growth tempo. CPT hiked its dividend per share by a cent.

Property revenues in the quarter came in at $390.8 million, missing the Zacks Consensus Estimate of $394.7 million. The figure increased 1.2% on a year-over-year basis.

For full-year 2025, the core FFO per share came in at $6.88, up year over year marginally. It also surpassed the Zacks Consensus Estimate of $6.85. Property revenues for full-year 2025 came in at $1.57 billion, rising 1.9% year over year.

CPT’s Q4 in Detail

In the reported quarter, same-property revenues increased 0.5% year over year to $362 million. Same-property expenses rose 1.5% to $126.2 million. As a result, same-property NOI almost remained flat at $235.8 million.

The same-property occupancy rate came in at 95.2%, down 10 basis points (bps) year over year and 30 bps sequentially.

In the fourth quarter, same-property effective blended lease rates decreased 1.6%, with effective new lease rates declining 5.3%, while effective renewal rates rose 2.8% versus expiring lease rates.

Interest expenses jumped 4.6% year over year to $34.1 million.

CPT’s Portfolio Activity

Camden has three communities under development with a total of 1,162 units at an estimated cost of $492 million.

During the quarter, Camden acquired Camden Lake Buena Vista, a 322-apartment home community in Orlando, FL, for around $85.2 million.

During the quarter, Camden disposed of two operating communities comprising 979 apartment homes — one dual-phased community in Houston, TX, and the other operating community in Phoenix, AZ, for around $201 million — recording a $128 million gain.

CPT’s Balance Sheet Position

CPT exited the fourth quarter of 2025 with a liquidity of $635.2 million. This included $25.2 million in cash and cash equivalents, and around $610 million of availability under its unsecured credit facility and commercial paper program.

Its net debt-to-annualized adjusted EBITDAre for the October-December period was 4.1 times, down from 4.2 times in the prior quarter.

During the fourth quarter, CPT repurchased 2.1 million common shares for an aggregate amount of $220.6 million. Post the quarter end, the company repurchased 1.1 million common shares for a total of $120.7 million.

In February 2026, Camden’s board of trust managers authorized a $600 million share repurchase program. The company has $600 million left under its stock repurchase program.

Q1 & 2026 Guidance by CPT

For the first quarter of 2026, CPT expects core FFO per share in the range of $1.64-$1.68. The Zacks Consensus Estimate presently stands at $1.71.

For the full year, CPT expects core FFO per share between $6.60 and $6.90, with the midpoint at $6.75. The Zacks Consensus Estimate presently stands at $6.92.

Management expects same-property revenue growth of negative 0.25-1.75% and an expense increase of 2.25-3.75%. Same-property NOI is projected between negative 2.5% and positive 1.5%.

CPT’s Dividend

Concurrent with its fourth-quarter earnings release, Camden declared its first-quarter 2026 dividend of $1.06 per share. The declared dividend represents a marginal increase over the amount paid in the prior quarter. The same will be paid out on April 17 to shareholders on record as of March 31, 2026.

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

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Mid-America Apartment Communities (MAA - Free Report) reported fourth-quarter 2025 FFO per share of $2.23, which surpassed the Zacks Consensus Estimate of $2.22. This compares with the FFO of $2.23 a year ago.

Results reflected higher occupancy and same-store effective blended lease rate growth year over year. The same-store portfolio’s NOI and average effective rent per unit fell, undermining the performance.

Essex Property Trust Inc. (ESS - Free Report) reported fourth-quarter 2025 core FFO per share of $3.98, missing the Zacks Consensus Estimate of $4. This compares favorably to the FFO of $3.92 a year ago.

Results reflected favorable growth in same-property net operating income and higher occupancy. Higher interest expenses partly acted as a dampener.

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.


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