We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
CPT's Q1 core FFO was $1.70 per share, beating consensus even as property revenues fell.
Camden's same-property NOI slipped 0.7% as expenses rose 1.9%, and blended lease rates hit -1.4%.
CPT sold a Texas community, marketed 11 in California, bought 2 after quarter-end.
Camden Property Trust (CPT - Free Report) reported first-quarter 2026 core funds from operations (FFO) per share of $1.70, beating the Zacks Consensus Estimate of $1.67 by 1.8%. Core FFO dipped 1.2% year over year from $1.72.
Property revenues were $388.8 million, down 0.5% year over year and modestly below the consensus estimate of $390.7 million (a -0.5% surprise). Same-property occupancy averaged 95.1% for the quarter.
Operating trends continued to show modest top-line traction and cost pressure. Same-property revenues rose 0.2% year over year, while same-property expenses increased 1.9%, resulting in a 0.7% decline in same-property net operating income (NOI).
Leasing spreads remained soft on new move-ins, while renewals provided partial support. Effective new lease rates were down 5.2% versus expiring leases, and effective renewal rates increased 2.9%, leading to effective blended lease rates of negative 1.4% for the quarter.
CPT's Development and Transaction Activity Remain Active
Leasing continued at Camden Village District in Raleigh, NC, where construction is complete, and the community was 72% leased as of April 29, 2026. Beyond that, the company had three communities under construction totaling 1,162 apartment homes at an estimated total cost of $492.0 million.
Transaction activity extended beyond development. During the quarter, Camden began marketing 11 operating communities in California for sale and disposed of Camden Valley Park, a 516-home community in Irving, TX, for about $77.0 million. Subsequent to quarter-end, the company acquired Camden Alpharetta (269 homes) and Camden at Lake Nona (288 homes) for a combined $171.3 million.
CPT ended the quarter with approximately $881.9 million of liquidity, comprising $40.7 million of cash and cash equivalents and $841.2 million of availability under its unsecured credit facility and commercial paper program. It also had about $176.6 million left to fund within its wholly owned development pipeline.
Leverage increased, with net debt to annualized adjusted EBITDAre at 4.7X compared with 4.1X a year earlier. Interest expense climbed to $37.4 million from $33.8 million in the prior-year quarter. CPT also issued $600 million of senior unsecured notes due 2036 during the quarter and extended the maturity of its $1.2 billion revolving credit facility to March 2030.
Camden continued to lean on share repurchases. During the quarter, it repurchased 2.63 million shares at an average price of $105.88 per share for a total of $278.8 million. Repurchases remained active after quarter-end, with 1.43 million shares bought back at an average price of $100.78 for $144.1 million. So far in the year, the company has repurchased 4.06 million shares for $422.9 million and has $297.8 million remaining under its stock repurchase program.
For second-quarter 2026, Camden guided core FFO per share in the band of $1.65-$1.69. The Zacks Consensus Estimate presently stands at $1.66.
For full-year 2026, core FFO per share guidance remained in the $6.60-$6.90 range. The Zacks Consensus Estimate of $6.74 lies within the guided range.
CPT maintained its same-property growth assumptions. Full-year same-property revenue growth is expected to range from a decline of 0.25% to an increase of 1.75%, while expenses are projected to rise 2.25% to 3.75%. Same-property NOI is forecast between a 2.50% decline and a 1.50% increase.
Camden recorded a $53.0 million litigation settlement-related charge in the quarter after signing a post-quarter term sheet, but said that the settlement payments will not affect its 2026 core FFO or core AFFO. As such, the company noted that its 2026 core FFO guidance excludes roughly 65 cents per share of non-core charges for legal costs and settlements and expensed transaction pursuit costs.
AvalonBay Communities, Inc. (AVB - Free Report) reported first-quarter 2026 core FFO per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Equity Residential (EQR - Free Report) reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Equity Residential’s operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Equity Residential’s management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
CPT Q1 FFO Beats Estimates Despite Lower Property Revenues
Key Takeaways
Camden Property Trust (CPT - Free Report) reported first-quarter 2026 core funds from operations (FFO) per share of $1.70, beating the Zacks Consensus Estimate of $1.67 by 1.8%. Core FFO dipped 1.2% year over year from $1.72.
Property revenues were $388.8 million, down 0.5% year over year and modestly below the consensus estimate of $390.7 million (a -0.5% surprise). Same-property occupancy averaged 95.1% for the quarter.
Camden's Same-Property Fundamentals Stay Pressured
Operating trends continued to show modest top-line traction and cost pressure. Same-property revenues rose 0.2% year over year, while same-property expenses increased 1.9%, resulting in a 0.7% decline in same-property net operating income (NOI).
Leasing spreads remained soft on new move-ins, while renewals provided partial support. Effective new lease rates were down 5.2% versus expiring leases, and effective renewal rates increased 2.9%, leading to effective blended lease rates of negative 1.4% for the quarter.
CPT's Development and Transaction Activity Remain Active
Leasing continued at Camden Village District in Raleigh, NC, where construction is complete, and the community was 72% leased as of April 29, 2026. Beyond that, the company had three communities under construction totaling 1,162 apartment homes at an estimated total cost of $492.0 million.
Transaction activity extended beyond development. During the quarter, Camden began marketing 11 operating communities in California for sale and disposed of Camden Valley Park, a 516-home community in Irving, TX, for about $77.0 million. Subsequent to quarter-end, the company acquired Camden Alpharetta (269 homes) and Camden at Lake Nona (288 homes) for a combined $171.3 million.
Camden Details Funding Position, Highlights Buybacks
CPT ended the quarter with approximately $881.9 million of liquidity, comprising $40.7 million of cash and cash equivalents and $841.2 million of availability under its unsecured credit facility and commercial paper program. It also had about $176.6 million left to fund within its wholly owned development pipeline.
Leverage increased, with net debt to annualized adjusted EBITDAre at 4.7X compared with 4.1X a year earlier. Interest expense climbed to $37.4 million from $33.8 million in the prior-year quarter. CPT also issued $600 million of senior unsecured notes due 2036 during the quarter and extended the maturity of its $1.2 billion revolving credit facility to March 2030.
Camden continued to lean on share repurchases. During the quarter, it repurchased 2.63 million shares at an average price of $105.88 per share for a total of $278.8 million. Repurchases remained active after quarter-end, with 1.43 million shares bought back at an average price of $100.78 for $144.1 million. So far in the year, the company has repurchased 4.06 million shares for $422.9 million and has $297.8 million remaining under its stock repurchase program.
CPT Updates Guidance, Maintains Same-Property Assumptions
For second-quarter 2026, Camden guided core FFO per share in the band of $1.65-$1.69. The Zacks Consensus Estimate presently stands at $1.66.
For full-year 2026, core FFO per share guidance remained in the $6.60-$6.90 range. The Zacks Consensus Estimate of $6.74 lies within the guided range.
CPT maintained its same-property growth assumptions. Full-year same-property revenue growth is expected to range from a decline of 0.25% to an increase of 1.75%, while expenses are projected to rise 2.25% to 3.75%. Same-property NOI is forecast between a 2.50% decline and a 1.50% increase.
Camden recorded a $53.0 million litigation settlement-related charge in the quarter after signing a post-quarter term sheet, but said that the settlement payments will not affect its 2026 core FFO or core AFFO. As such, the company noted that its 2026 core FFO guidance excludes roughly 65 cents per share of non-core charges for legal costs and settlements and expensed transaction pursuit costs.
CPT's Zacks Rank
Camden currently carries a Zacks Rank #3 (Hold). 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-eps-surprise-chart | Camden Property Trust Quote
Performance of Other Residential REITs
AvalonBay Communities, Inc. (AVB - Free Report) reported first-quarter 2026 core FFO per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Equity Residential (EQR - Free Report) reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Equity Residential’s operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Equity Residential’s management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
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.